Bank of Japan rate-hike expectations heat up in April, with economic data showing supply-and-demand resilience supporting policy normalization

Gate News reports that on March 27, recent output gap and price trend data provide a stronger basis for the Bank of Japan to raise interest rates in April. Daiwa Securities economist Kenji Yamamot pointed out that the data indicates that the supply and demand dynamics of the Japanese economy remain resilient against a backdrop of rising inflation. He stated that even if there are temporary signs of a slowdown in inflation, as long as the underlying price trend remains stable, there is no clear reason to delay the normalization of monetary policy. Kenji Yamamot added that this data will support the Bank of Japan in tightening monetary policy in April while maintaining a cautious policy stance.