Japan’s households, firms on saving spree as pandemic impact lingers
Japan’s currency hit a four-month record high in June, the central bank’s data showed on Friday, following a saving spree of households and companies uncertain of the country’s economic status amid lingering pandemic impact.
Japan is trailing behind other major economies in recovering from the COVID-19’s blow. The country’s weak consumption is expected to worsen after the government’s declaration of another state of emergency in Tokyo.
Japan’s currency in circulation and deposits at financial institutions or M3 money stock climbed 5.2% in June from a year earlier to a record 1.52 quadrillion yen ($13.84 trillion).
It followed a 6.8% increase in May and was the slowest pace since May last year.
Bank deposits gained 9.3% in June from a year earlier, the slowest pace of increase since April last year. A total balance of 863.5 trillion yen was the second-highest recorded.