TOKYO : Japan's economic output recovered to full capacity for the first time in about four years in the October-December quarter, a positive sign that may allow the central bank to raise interest rates again.
TOKYO : Japan's economic output recovered to full capacity for the first time in about four years in the October-December quarter, a positive sign that may allow the central bank to raise interest rates again.
It followed a reading of -0.37 per cent in the third quarter, and was the first positive reading in 15 quarters. A positive output gap occurs when actual output exceeds the economy's full capacity, and is considered a sign of strong demand. It is seen by analysts as one of a handful of prerequisites for wages to rise more, and push inflation sustainably around the BOJ's 2 per cent target.
Markets are on the look-out for any clues on how soon the central bank could raise interest rates again.
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