Japan: Abenomics and the economy GTM –UK | 32 Wage growth Bank lending and job-to-applicant ratio % change year on year, three-month moving average % lending growth year on year (LHS); ratio of number of jobs to applicants (RHS) Core CPI* 8 Job-to-applicant 1.6 Nominal wage growth ratio y 1.4 4 1.2 Global econom 1.0 Japanese yen effective exchange rate 0 0.8 Index level Abe elected US election Yield curve 0.6 targeting NIRP -4 0.4 0.2 Bank lending (y/y) -8 0.0 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: (Top left) FactSet, Japan Ministry of Internal Affairs & Communications, Japan Ministry of Health, Labour and Welfare, J.P. Morgan Asset Management. *CPI is the Consumer Price Index. Core CPI is defined as CPI excluding food and energy. (Bottom left) FactSet, J.P. Morgan Asset Management. NIRP stands for negative interest rate policy. (Right) Bloomberg, J.P. Morgan Asset Management. Guide to the Markets - UK. Data as of 31 December 2016. 32