SMBC Nikko Securities economist Maruyama said BOJ Q1 output gap estimates show a
sustained positive trend, supporting higher inflation and providing a rationale
for further rate hikes. He added the positive gap has not widened, so there is
no immediate need to accelerate tightening; any faster or larger hikes would
likely stem from a delayed but material pass-through of Middle East-related
inflation or from rising inflation expectations.
