Japan’s seasonally adjusted bank lending excluding trusts rose 6.3% YoY in June,
the strongest pace since August 2020, driven by M&A, real estate and
recovery-related loans, the BOJ said. The central bank said the data show credit
channels remain open, reinforcing its view that financial conditions are still
accommodative even after Governor Ueda raised the policy rate to its highest
since 1995 last month. The BOJ cautioned the latest lending figures may not yet
reflect the June rate rise; policymakers have repeatedly cited financial
conditions as a key input when weighing further tightening. Robust loan demand
suggests higher borrowing costs have not curbed corporate investment or
household activity, supporting the case that the economy can absorb additional
policy normalization. The BOJ’s Tankan showed corporate financial conditions
improved for the first time in a year, and large firms reported easier
commercial paper issuance conditions.
