Japan's economy bounces back, reviving BOJ rate hike speculations

Posted on April 5, 2024   |  

Japan's economy reached full capacity for the first time in four years during the October-December quarter, indicating a positive trend.

The output gap, measuring the disparity between actual and potential output, registered at +0.02% in the final quarter of the previous year, a significant improvement.

This positive figure contrasts with a negative reading of -0.37% in the third quarter and marks the first positive reading in 15 quarters.

The Bank of Japan (BOJ) recently concluded eight years of negative interest rates and unconventional policies, signaling a historic departure from its previous focus on tackling deflation and promoting growth.