Reported about 6 hours ago
The Bank of Japan (BOJ) is shifting its perspective on weak economic activity, attributing it primarily to chronic labor shortages rather than stagnant demand, which may lead to more interest rate hikes than previously anticipated. As businesses across various sectors struggle to find workers, the BOJ's policymakers are increasingly acknowledging the impact of wage-driven inflation, indicating a potential move beyond the current rates. With Japan facing a significant labor deficit projected to worsen, the BOJ is recognizing the upward pressure on wages and prices, signaling a departure from its long battle with deflation.
Source: YAHOO