MNI BRIEF: BOJ Survey Notes Steady Inflation Expectations
MNI (TOKYO) - Bank of Japan’s closely watched five-year median household inflation forecast stood unchanged at 5% over Q3, while the number of households that expect prices to rise increased to 83.6% from 82.0%, the BOJ’s quarterly consumer survey showed on Thursday.
The household median inflation view a year ahead stood at 8%, down from Q2's 10%.
The survey showed that the number of households that experienced improved circumstances in Q3 rose to 41.3% from 39.8% in June due to the rise in profits and income. The diffusion index, which gauges households sentiment on current economic conditions, increased 1.6 points to -48.2 in September with more people noting improved sentiment due to income levels, profits and media reports, the survey showed.
The results support the BOJ’s policy normalisation path, despite the Bank's view that underlying inflation has failed to reach 2%. (See MNI POLICY: BOJ Rate View Intact, Despite Dovish PM Remarks)