The Japanese need to shift from a saving behaviour to a consumption model| FXMAG.COM

The Bank of Japan has put a lot of effort into getting prices back on track

Today we have the freshest inflation data from Japan – for February 2023. The CPI rose by 3.3% y/y, which is a decrease from the January figure.

The Bank of Japan has put a lot of effort into getting prices back on track

The data for March are scheduled for 21 April. Before that, there is one more important release: the household spending report for February. The forecast suggests that month by month, this figure has declined by 0.4% after January's 2.7% rise. At the same time, the year-on-year indicator might have risen by 4.7% after a decline of 0.3% previously.

As we can see, the price situation in Japan remains extremely volatile. The Bank of Japan has put a lot of effort into getting prices back on track. For this purpose, it has been implementing an ultra-soft credit and monetary policy for years. However, it feels like its effect is fading.

The Japanese need to shift from a saving behaviour to a consumption model. And this, in turn, implies that the people need to have confidence in the Central Bank's monetary policy and see positive economic horizons, none of which is felt yet.

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Andrey Goilov

I have a higher economic degree and have been working on the Forex market since 2005. Now I'm a financial analyst and successful trader, also member of RoboForex Analytics Department. I provide short- and long-term reviews for the company's clients, create analytical articles on financial markets and educational materials for RoboForex.

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