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MNI BRIEF: BOJ: Japan's Output Gap Narrows To -1.55 PPS In Q4

TOKYO (MNI)

Japan's output gap is seen at -1.55 percentage points in the October-December period 2021, narrowing from -1.57 pps in Q3 for the seventh consecutive quarterly negative gap, the Bank of Japan estimated on Tuesday.

The narrowing negative output gap indicates upward pressure on consumer prices and that inflation expectations will strengthen, albeit with a lag of a few quarters. The BOJ's estimate is based on capital and labour stocks, and is less than the Cabinet Office's estimate of -4.8 pps in Q3.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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