The third factor is a change in households' preference for holding on to their cash and deposits. The amount outstanding of households' cash and deposits continued to grow, increasing by 44 trillion yen relative to the pre-pandemic trend, and reaching 1,072 trillion yen as of endSeptember 2021 (Chart 5).
If the impact of COVID-19 gradually wanes, this is expected to result in a materialization of pent-up demand, thereby stimulating economic activity.