Japan Outlook

Japan is getting out of deflation and into inflation,in the view of Jesper Koll,CEO of Tantillon Research Japan.All domestic demand indicators fot he last six months have surprised on the upside.The Bank of Japan will do absolutely nothing,as it remains an academic institution.The risk to the economy is fiscal,with a tax increase looming.Nonetheless,domestic travel,service demand and the upgrade cycle of homes and condos are all going nicely.Large companies are releveraging,locking in the lower rates.The policy interest rate level is 0.5,and is poised to stay that way for a very long time,Mr.Koll believes.