Over the next few weeks, the big question for the Bank of Japan, Nikkei, Japanese Yen and JGB traders is the amount of damage that the consumption tax hike had on the economy. One would naturally assume that after spending strongly in March in the lead up to the April 1 tax hike, demand would retreat aggressively in April and May. This possibility would deter business activity and investment as companies in Japan wait to see how much drag the tax had on the economy.
However based on the initial…