Japan: PM Abe likely to postpone sales tax hike until October 2019

Over the weekend, Nikkei reported that Japan PM Abe is strongly considering the possibility of delaying a planned sales tax until October 2019, with Abe citing the boost in demand expected to be created by the 2020 Summer Olympics in Tokyo, thus putting the economy in better shape, the Nikkei adds.

Yujiro Goto, Strategist at Nomura, notes: "Prime Minister Abe says he will make a decision on the sales tax hike before the summer election. At his post-summit press conference the prime minister noted the significant risk of a crisis facing the global economy, which suggests a high likelihood that the sales tax hike will be delayed. An announcement is likely this week."