On the Bank of Japan's favoured measure, spare capacity has remained tight across the economy despite the recent weakness of GDP - which this week's data confirmed extended into Q1. That's another reason to think that the Bank won't be deterred from lifting interest rates further.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services