Bank of Japan Board Members See Upside Risks to Inflation Outlook at July Meeting; Some Note Low Real Rates, Others Warn of Weak Consumption
–One Member Estimates Minimum 1% Neutral Rate, Calls for Gradual Pace of Rate Hikes By Max Sato (MaceNews) – Bank of Japan board members called for a close watch on upside risks to their inflation outlook amid labor shortages and higher import costs, with a majority seeking to justify a follow-up interest rate by pointing […]
Japan June Overall Household Spending Dips Y/Y on Volatile Factors but Core Reading Records 1st Rise in 16 Months as Heat Wave Boosts Demand for Air Conditioners
–Consumers Remain Frugal, Switching to Discount Mobile Phone Plans–High Wage Hikes amid Labor Shortages Lead to 2nd Straight Rise in Average Household Income–Base Wages Mark Highest Growth in Nearly 3 Decades; Real Wages Up for 1st Time in 27 Months By Max Sato (MaceNews) – Japan’s real household spending posted its second straight year-over-year drop […]
Bank of Japan Hikes Overnight Rate Target to 0.25% from Range of 0% to 0.1% in 7 to 2 Vote
–BOJ Releases Specific Plans to Trim its Monthly JGB Purchases to Y3 Trillion from Y6 Trillion by end of Q1 2026–BOJ Governor Ueda: Raised Rates Because Economy, Prices Have Been on Track–Ueda: Weak Yen Impact on Prices ‘Not Necessarily Biggest Reason’ for Rate Hike By Max Sato (MaceNews) – The Bank of Japan said Wednesday […]
Japan June Retail Sales Up 3.7% Y/Y Rise Vs. 2.8% in May as Delayed Rainy Season Boosts Demand for Summer Clothing, Air Conditioners
–METI Upgrades View for 2nd Straight Month: Retail Sales on Uptrend Vs. Gradual Uptrend By Max Sato (MaceNews) – Japanese retail sales rose 3.7% on year in June, above the consensus call of a 3.0% rise, with the pace of increase accelerating from a downwardly revised 2.8% gain in May, thanks to a delayed rainy […]
Japan June Industrial Production Dip 3.6% on Month, Hit by Renewed Auto Vehicle Output Suspension over Safety Scandal, Giving Up May’s 3.6% Rebound
–METI Survey: Factory Output Likely to Rise 4.0% in July, 0.7% in August— Japan Q2 Core Capital Goods Shipments +0.5% Q/Q Vs. -2.0% in Q1, Indicating Capex Rebound in Q2 GDP–Japan Q2 GDP Forecast to Post Modest 2% Annualized Growth After 2.9% Slump in Q1–METI Keeps View: Output Has Weakened While Taking One Step Forward, […]
Japan June Jobless Rate Edges Down to 2.5%, 1st Drop in 5 Months as Number of New Job Seekers Slumps
–Employment Marks 23rd Straight Y/Y Rise, Led by Surge in Wholesale/Retail; Manufacturing Jobs Post 4th Drop in a Row–Number of Unemployed Up Y/Y for 3rd Straight Month By Max Sato (MaceNews) – Japanese payrolls posted the 23rd straight rise on year in June, led by a surge in the wholesale and retail industry which offset […]
Japan July Tokyo Core CPI Annual Rate Rises Slightly to 2.2% from 2.1% in June as Govt Ends Utility Subsidies; Energy Effect Partly Offset by Easing Processed Food Markups
–Total CPI Annual Rate Slows to 2.2% from 2.3% in Light of Smaller Fresh Food Price Rise–Core-Core CPI (Ex-Fresh Food, Energy) Decelerates to +1.5% from 1.8% By Max Sato (MaceNews) – Consumer inflation in Tokyo, the leading indicator of the national average, picked up only slightly in July in the core reading after the government […]
Japan Government Keeps Its View on Economic Recovery amid Wage Hikes, Warns of Drag from High US, European Rates, China’s Real-Estate Woes
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy is recovering “moderately” and is likely to stay on course as many firms are raising wages at a higher pace to secure workers and although exports are now largely flat. In its monthly report released Thursday by the Cabinet Office, the […]
Japan June Core CPI Annual Rate Edges Up to 2.6% from 2.5% in May as Effects of Renewable Energy Fee Hike, Reduced Utility Subsidies Offset Easing Processed Food Markups
–Total CPI June Y/Y Rise Steady at 2.8%; Fresh Food Prices Still Up 8%–Core-Core CPI (Ex-Fresh Food, Energy) Annual Rate Creeps Up to 2.2% from 20-Month Low of 2.1% in May By Max Sato (MaceNews) – Consumer inflation in Japan inched up in two of the three key measures in June on reduced subsidies for […]
Ex-BOJ’s Momma Sees BOJ Cautious About Rate Hike Timing amid Slow Services Price Rise; Not in Position to Act on Weak Yen
–Momma Expects BOJ Rate Hikes in September, January but Warns of Economic Uncertainty–Momma Estimates BOJ’s Own Measure of Underlying Inflation at 1.5%, Still Below 2% Target–Momma: Central Banks Alone Cannot Anchor Inflation; Need Fiscal, Tax Policy Backup for Wealth Redistribution By Max Sato TOKYO (MaceNews) – The Bank of Japan will remain cautious about following […]