TechFlow News: According to JINSHI Data, on March 27, recent output gap and price trend data strengthened the Bank of Japan’s (BOJ) rationale for raising interest rates in April. Kenji Yamamoto, economist at Daiwa Securities, stated that the data indicate Japan’s supply-demand dynamics remain resilient even as inflation continues to rise. Therefore, “there is no clear reason to delay monetary policy normalization,” he said, adding that even if inflation appears to slow temporarily, as long as underlying price trends remain unchanged. These data will help the BOJ tighten monetary policy in April “while maintaining a cautious judgment,” he added.
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