Nearly 70% of Japan household to cut spending post-tax hike: BoJ

TOKYO: Nearly 70% of Japanese households plan to cut back on spending after the sales tax increase that was implemented on Tuesday, a central bank survey showed, underscoring concern that the economy may start to lose support from private consumption.

Many policymakers already expect household spending to cool following the tax hike, but how soon it rebounds will be key to whether the economy can make a sustained exit from years of deflation, particularly as export growth remains sluggish.