Institution: Japan's output gap remains positive, which may support further rate hikes

```htmlGolden Ten Data reported on July 6 that Maruyama Yoshimasa, an economist at SMBC Nikko Securities, stated that the Bank of Japan’s first-quarter output gap estimate shows a stable positive trend, which helps drive inflation higher. He pointed out that this data can be seen as a reason to support further rate hikes. However, he added that the positive output gap has not widened, indicating there is currently no urgent need to accelerate the pace of monetary tightening. "If there is a need to speed up rate hikes or increase their magnitude in the future, it may be due to the delayed but significant transmission effect of inflationary pressures stemming from the situation in the Middle East, or a rise in inflation expectations," he said.```