Forex and other markets news
5.04.2023, 20:56
BOJ reveals that Japan's economy is slowing down
BOJ reveals that Japan's economy is slowing down
The Bank of Japan (BOJ) said on Tuesday (April 5) Japanese economic output fell below peak capacity for the 11th straight quarter, indicating that conditions for ending ultra-low interest rates are still in place. not entering the entrance
The BOJ stated that the gap in Japan's production As measured by the difference between real economic output and peak capacity output, it was -0.43% in the fourth quarter of 2022, widening from -0.08% in the July-September quarter.
Negative margins occur when actual output is lower than peak capacity output. and a sign of weakening demand. This often puts downward pressure on inflation.
Output gap data is one of the factors used by the BOJ as a measure of whether economic growth and domestic demand remain strong enough to meet their 2% inflation target.
Markets were expecting the BOJ to end its ultraloose monetary easing policy when Kazuo Ueda became the new BOJ governor in April. this
However, Japan's economy grew only 0.1% annually in October. - Dec makes Japan avoid a recession only slightly. as capital expenditure and consumption remain weak.
While the cancellation of the strict control measures for COVID-19 is driving the consumption sector Signs of a slowdown in growing external demand are also overshadowing the prospects for a recovery in Japan's export-dependent economy.
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