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 […]
ISM: US Services Sector Back in Growth in July After Unexpected Slip Back into Contraction in June; April-July Average Moderates to Early 2020 Pandemic Slump
–ISM Services Index at 51.4 Vs. 48.8 in June Vs. Median Forecast 51.0–Business Activity, New Orders, Employment All Rebound–Prices Paid Index Remains Elevated at 57 but Has Eased from Above 70, 80 in 2021 and Parts of 2022 By Max Sato (MaceNews) – The U.S. services sector rebounded largely as expected In July, backed by […]
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 […]
Preview: Bank of Japan Expected to Keep Rate Target This Week, Seek Rate Hike in September if Data Shows Wage Hikes Spreading to Smaller Firms, Pushing Up Weak Services Costs
By Max Sato (MaceNews) – The Bank of Japan board is widely expected to maintain its policy stance at its two-day meeting this week and wait until its next meeting on Sept. 20-21 to follow up on its first rate hike in 17 years in March by raising the overnight interest rate target to 0.25% […]
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 […]
Bank of Canada Trims Policy Rate Further by 25 Basis Points to 4.50% on Easing Inflation, Cooling Economy; Leaving Door Open for More Cuts
–BoC: Excess Supply Lowers Inflationary Pressures but Shelter, Some Other Services Holding Inflation Up–Governor Macklem: Downside Risks Taking on Increased Weight in Monetary Policy Deliberations–Macklem: Need Growth to Pick Up So Inflation Does Not Fall Too Much, Even as We Work To Get Inflation Down To 2% Target By Max Sato (MaceNews) – The Bank […]
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 […]