The data released this week on balance increase the risk that the Bank of Japan leaves interest rates unchanged next week. While household disposable income jumped in Q1, that reflected a one-off boost from social benefits that won’t be sustained. More worrying for the BoJ is the sharp drop in services inflation in Tokyo, though the figures show that price gains are no longer mostly driven by just a handful of components.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services