Skip to main content

Diminishing capacity shortages won’t prompt rate cuts

Capacity shortages remained pronounced on the eve on the sales tax hike. And even though we expect the output gap to decline a bit over the coming months, that probably won’t trigger additional easing by the Bank of Japan. Meanwhile, we doubt that Carlos Ghosn’s attacks on Japan’s judicial system will discourage foreign investors.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.