Central Banks
BOJ Research Notes Indicate Interest Rate Hike Is Still on Table
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The Bank of Japan released a pair of research papers highlighting the persistence of inflationary pressure in the economy, indicating there is still a case to be made for another interest rate hike.
The notes released Tuesday highlight the potential impact of the nation’s chronic labor shortage on wages and the shift in corporate behavior with regards to setting prices in the services sector. The papers were compiled by officials in the bank’s economics department and, as is customary, they came with a standard disclaimer that the views belong to the authors and don’t necessarily reflect the BOJ’s official stance.