Our Japan Chart Pack has been updated with the latest data and our analysis of recent developments.
GDP growth appears to have all but stalled in Q3 but that was after a very strong first half. There are mounting signs that a virtuous cycle is forming between wages and prices. This is making the Bank of Japan increasingly confident that it can steer inflation, which is still well above-target, to settle near the 2% target over the medium term. We think that Governor Ueda will use this window of opportunity to dismantle the ultra-loose policy framework that was built by his predecessor, Governor Kuroda. We expect the Bank to end negative interest rates in early 2024, followed by a formal dismantling of Yield Curve Control by mid-year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services