MNI BRIEF: BOJ Sees Spending Recovery Confirmed By Data

Bank of Japan officials judged that the recovery of private consumption is confirmed by hard economic data and they expect the recovery trend to be boosted by pent-up demand, MNI understands.

They are focused on whether the recovery of private consumption will strengthen firms’ price-setting behavior but they also see wage hikes are necessary to cause a virtuous cycle from income to spending in the household sector.

Bank officials don’t expect the recovery trend not to worsen anytime soon but they are vigilant against the risk that economic activity will be impeded by government’s decision of introducing emergency measures in the wake of the rise in new infections.