Annual Economic June 2022 Report

Russia defaulted on its foreign-currency sovereign debt for the first time in a century, the culmination of ever-tougher Western sanctions that shut down payment routes to ...

Opinions on Economic and Financial Developments: Economic Developments: • Japan's economy has picked up as a trend, although some weakness has been seen in part, mainly due to the impact of the novel coronavirus (COVID-19) and a rise in commodity prices. The economy is likely to recover, with the impact of COVID-19 and supply-side constraints waning, although it is expected to be under downward pressure stemming from the rise in commodity prices. • Japan's private consumption has picked up, particularly for services consumption, with the impact of COVID-19 waning and the number of people going out increasing. • Although Japan's economy has been under downward pressure due, for example, to supply-side constraints and a surge in prices of imported raw materials, it has picked up as a trend with private consumption improving, particularly for services consumption such as travel. • Along with changes in the number of confirmed cases of COVID-19, Japan's economy saw repeated fluctuations, mainly for services consumption. However, as people have got used to living with COVID-19, the degree of decline in the economy in response to increases in the number of COVID-19 cases has become smaller. • Private consumption has been on a recovery trend. Fi tweet at 7:52pm: ONE BOJ MEMBER: WE MUST FIRMLY SUPPORT THE ECONOMY BY EASING. tweet at 7:54pm: BOJ SUMMARY OF OPINIONS: THE NUMBER OF GOODS EXPERIENCING PRICE INCREASES IS INCREASING AS A RESULT OF RISING RAW MATERIAL COSTS AND A WEAK YEN, BUT IT IS APPROPRIATE TO MAINTAIN EASY MONETARY POLICY BECAUSE INFLATION IS NOT DRIVEN BY A POSITIVE ECONOMIC CYCLE. tweet at 7:54pm: ONE BOJ MEMBER: WE PREDICT CONTINUED UPWARD PRESSURE ON YIELDS. tweet at 7:55pm: BOJ SUMMARY OF OPINIONS: MUST HEIGHTEN HOUSEHOLDS' PURCHASING POWER, INFLATION EXPECTATIONS TO ACHIEVE BOJ'S PRICE GOAL IN STEADY MANNER.