Full employment not good enough for BoJ - Capital Economics
Japan Economics

Full employment not good enough for BoJ

Japan Economic Outlook
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The sales tax hike is likely to trigger a fall in output in Japan later this year but, thanks to counter-measures from the government, the downturn will be much less sharp than after similar tax increases in the past. Even so, price pressures will remain muted and the Bank of Japan will have to keep policy loose to prevent deflation from returning.