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Japan demand still weak despite negative rate policy

Gusto, a family-style restaurant chain, offers its daily lunch special for only 499 yen plus tax.

TOKYO -- Weak domestic demand is slowing the recovery pace of the Japanese economy. The negative interest policy, introduced by the Bank of Japan in February, appears to have brought little positive impact so far.  

     Since Prime Minister Shinzo Abe took office for the second time in 2012 and launched his economic stimulus policies known as Abeonomics, Japan's economy has gradually improved. The uptrend has been largely thanks to strong domestic consumer spending and capital investment by businesses, but without much improvement in wages, Japanese households have again tightened their purse strings. 

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