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MNI BRIEF: Japan's Q2 Output Gap Hits 17th Negative Quarter

MNI (TOKYO) - The Bank of Japan has estimated the economy's output gap at -0.55% in Q2, its 17th straight quarter in negative territory following Q1's -0.72%, indicating upward pressure on prices continues with a time lag, data released by the BOJ showed on Thursday.

The BOJ's estimate of the output gap, based on capital and labour stocks, is smaller than the Cabinet Office's last estimate of -0.6% in Q2 (vs. -1.2% in Q1), which is only based on revised second preliminary Q2 GDP data showing a 0.7% rise q/q, or an annualised rate of 2.9%.

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MNI (TOKYO) - The Bank of Japan has estimated the economy's output gap at -0.55% in Q2, its 17th straight quarter in negative territory following Q1's -0.72%, indicating upward pressure on prices continues with a time lag, data released by the BOJ showed on Thursday.

The BOJ's estimate of the output gap, based on capital and labour stocks, is smaller than the Cabinet Office's last estimate of -0.6% in Q2 (vs. -1.2% in Q1), which is only based on revised second preliminary Q2 GDP data showing a 0.7% rise q/q, or an annualised rate of 2.9%.

Keep reading...Show less