FX.co ★ Japan Coincident Index Revised Higher

In April 2025, Japan's index of coincident economic indicators—which tracks trends in factory output, employment, and retail sales—rose to 116.0, beating the initial estimate of 115.5 and slightly exceeding March's figure of 115.8. This slight increase occurred as the government endeavored to mitigate the economy's exposure to newly implemented U.S. tariffs. Concurrently, Tokyo aimed to alleviate cost pressures by implementing measures such as subsidized fuel prices, partial electricity bill coverage, and enhanced low-interest loans specifically aimed at small and medium-sized enterprises. On the monetary front, the Bank of Japan kept its benchmark short-term interest rate close to 0.5%—its highest point since 2008—during its March meeting. The board indicated that, based on its economic and inflation forecasts, it might continue to increase rates and adjust monetary support.