The most recent data confirmed themes that we have been seeing for some time. Strong competition from new entrants and changes in retailers’ business models are putting downward pressure on the prices of consumer durables and groceries. The prices of many of these goods are lower than they were a few years ago. This is good news for consumers, although not for some retailers.
The Bank has been having close dialogue more than ever with market participants and taking firm action, including an adjustment of the “parameters” of the JGB purchase operations. Yesterday, the Bank released the outline of the outright purchases of JGBs for the time being. Specifically, it decided to increase the frequency of JGB purchases.