TechFlow, December 15 — Economists said that improved business confidence in Japan and upward revisions to capital expenditure plans in the Tankan business survey may strengthen the case for the Bank of Japan to raise interest rates at its meeting this week. "Despite negative growth in the third quarter from July to September, the Tankan survey shows the supply-demand gap is trending toward improvement, which we expect will continue pushing up underlying inflation," said Takeshi Minami, economist at Norinchukin Research Institute. However, he added that given expectations for easing inflation in the next fiscal year, the pace of monetary tightening after the next rate hike could be slow. (Jinshi)
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