The Bank Of Japan, in its two-day policy meeting, scrutinized the reports from its regional branches. The central bank was optimistic that the country will be able to meet its 2% inflation target. The bank, however, cautioned that the wage hikes were broadening across the country under the pressure of inflation and it thinks this will underscore their inflation target.
The bank’s quarterly report for seven regions is unchanged. It stated that a few regions were ‘picking up moderately’ on economic factors.
It observed that intensifying job shortages and inflation was forcing even mid-sized firms to hike wages. Despite these factors, the BOJ was positive about the nation’s economy as a whole. The policy meeting has happened against the backdrop of a sustained global rise in interest rates as the world grapples with inflation.
