Nikkei 225, USD/JPY remain beholden to the US interest rate outlook

tables

tables

Opinions on Economic and Financial Developments Economic Developments • Japan's economy has recovered moderately, although some weakness has been seen in part. It is likely to keep growing at a pace above its potential growth rate, as a virtuous cycle from income to spending gradually intensifies. • Economic activity and prices have been on track, as seen in the results of this year's annual spring labor-management wage negotiations being reflected in wages. • Although private consumption has not been so strong, it is likely to remain resilient. Not only is this due to factors such as cuts in income tax and inhabitant tax, it is also because the results of this year's annual spring labor-management wage negotiations are likely to be further reflected in wages and summer bonus payments have been favorable. • Private consumption appears to lack momentum based on macroeconomic statistics, but microeconomic data have shown some strong developments. Private consumption has therefore not necessarily been weak.  Weakness has been seen mainly in private consumpt post: BOJ MEMBER: INTEREST RATE AT 0.25% STILL EXTREMELY LOOSE post: BOJ JULY SUMMARY: **ONE MEMBER SAID GIVEN ENVIRONMENT SURROUNDING INFLATION, IT IS GOOD TIME TO CONSIDER SMALL RATE HIKE **ONE MEMBER SAID BOJ SHOULD EVENTUALLY RAISE RATES TO LEVELS DEEMED NEUTRAL TO ECONOMY, WHICH IS LIKELY AT LEAST AROUND 1% **ONE MEMBER SAID BOJ…