Japanese households’ inflation expectations rose in March from 3 months ago and their confidence on the economic outlook improved to an 8-yr high, a BoJ survey showed, a sign the initial pain from the coronavirus chaos is fading.
The outcome offers some relief to policymakers struggling to balance the need to prevent a resurgence of COVID-19 infections while sustaining a moderate economic recovery.
The ratio of households which expect prices to rise a yr from now stood at 62.4% in March, up from 60% in December, the Bank of Japan’s (BoJ) survey showed Wednesday.
A diffusion index measuring households’ confidence on the economy a yr from now stood at -8.5 in March, recovering sharply from -23.1 in December and marking the highest mark since June 2013, the survey showed.
The poll follows a separate BOJ survey that showed business confidence improving to pre-pandemic levels in Q-1 as the economy benefited by strong global demand.
The survey will be among factors the BOJ will scrutinize when it conducts a quarterly review of its growth and price forecasts at its next rate review on 26-27 April.
Have a healthy day, Keep the Faith!