The Bank of Japan says a key measure indicates demand has exceeded supply, potentially pushing prices higher. The output gap has become positive for the first time in three years and nine months.
The central bank estimates the figure for the October-to-December period last year stood at 0.02.
A positive reading means that demand is higher than supply, putting upward pressure on prices.
The BOJ decided last month to end its negative interest rate policy for the first time in 17 years. Policymakers said that their target of stable 2 percent inflation would be achieved.
Analysts are watching how the positive output gap could affect the bank's policies going forward.
The central bank estimates the figure for the October-to-December period last year stood at 0.02.
A positive reading means that demand is higher than supply, putting upward pressure on prices.
The BOJ decided last month to end its negative interest rate policy for the first time in 17 years. Policymakers said that their target of stable 2 percent inflation would be achieved.
Analysts are watching how the positive output gap could affect the bank's policies going forward.
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Summary
Bank of Japan reports a positive output gap, indicating excess demand over supply, potentially leading to price increases. The October-to-December output gap for last year was 0.02. This positive reading suggests upward pressure on prices. The BOJ ended its negative interest rate policy after 17
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ID: 38620065-8228-436b-a391-fdf614285bc4
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20240403_35/
Date: April 3, 2024
Created: 2024/04/04 06:30
Updated: 2025/12/08 15:36
Last Read: 2024/04/04 09:56