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Former Bank of Japan (BoJ) Economist Hideo Hayakawa was on the wires last minutes, speaking about the Japanese economic outlook in an interview with Reuters.

Key Points:

Japan may slip into recession either in 2019 or 2020.

BoJ may tolerate bond yield rises to around 0.4% under new July guidance.

With new guidance, BoJ can now conduct “stealth” rate hikes.