Prime Minister Shinzo Abe announced that he would postpone a hike in the consumption tax to October 2019. He also said he would unveil a fiscal stimulus package in the autumn. Moody's Investors Service says the combined move is credit negative as it raises further questions over the government's ability and willingness to meet its stated fiscal consolidation goals. By delaying the tax hike, we estimate the administration will forego additional revenues worth around 1.0% of GDP per year. The stimulus will constitute a further unknown cost. This will likely prevent Japan from meeting its fiscal targets, which looked ... (full story)