-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI INSIGHT: BOJ Sees Risk Of Slowing Consumer Demand In Q3
Bank of Japan officials see a risk that private sector spending could slow in Q3 as the cost-of-living crisis and a fresh rise in Covid cases weigh on sentiment, impeding the recovery from the pandemic after the economy started to pick up in the second quarter, MNI understands.
The latest data from the government showed consumer sentiment fell for a second straight month in July, with measures for the current position and the three-months ahead outlook both under pressure.
The Economy Watchers sentiment index for the current economic climate fell a seasonally adjusted 9.1 points to 43.8 in July from 52.9 in June, while the outlook index for two-to-three months ahead fell 4.8 points to 42.8 from 47.6.
REAL INCOMES DOWN, COVID CASES UP
Economists at the BOJ saw rising costs and Covid as the drivers behind declining sentiment, with the face-to-face service sector struggling as cases rise again and cap the pent-up demand that was starting to emerge.
Higher prices across the food sector are having an even bigger impact, as inflation runs ahead of wage gains and constrains consumer demand.
In recent weeks, many Japanese have returned home to visit families for the first summer holiday season in three years, as the government imposed no restrictions despite rising infections. However, some groups, including the elderly and more vulnerable, are still cautious about re-engaging with the wider world.
How Covid cases develop in the coming weeks will therefore be key to a recovery in the service sector, particularly in the hospitality industries.
The BOJ still sees both exports and industrial production continuing the recovery as supply-side constraints ease, although the global shortage of semiconductors continues.
Preliminary data released Monday showed that a third consecutive quarter of positive GDP growth helped Japan’s economy recover in the second quarter to its pre-Covid levels. Q2 GDP rose 0.5% q/q, or an annualized +2.2%. Private consumption, which accounts for about 60% of the country’s GDP, rose 1.1% q/q in Q2, in line with analyst expectations.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.