Japanese household spending
-1.3% m/m
- expected -0.7%, prior +2.0%
-1.1% y/y, fell for a second consecutive month
- expected -2.1%, prior -1.9%
Not encouraging for a BoJ rate hike. The Bank of Japan want to see sustainable wage increases, fuelling spending, fuelling inflation sustainably and stably around their target. Thats the chain they want, and is a reasonable outline of what's needed for more rate hikes. The "but", of course, is if the yen weakens further they may well hike regardless. And the "but" on this is there are political pressures to slow rate hikes (not that they've been quick).
