DoubleLine Paper Warns Japan Faces Market Backlash Over Unfunded Fiscal Expansion
A DoubleLine Capital paper warns that Japanese Prime Minister Sanae Takaichi faces a potential market backlash similar to the UK's 'Truss shock' of 2022, due to her government’s proposal for unfunded fiscal expansion. The report highlights concerns over Japan's plan to coordinate monetary policy with its growth agenda and criticizes the Bank of Japan's cautious rate-hiking approach.
Topics: DoubleLine Capital Japan JGBs monetary policy Sanae Takaichi