Structural labour shortages point to more rate hikes

The Tokyo CPI suggests that the Bank of Japan’s Board will need to revise up their inflation forecasts yet again at the May meeting. And with the expansion in employment running on fumes as the participation rate has hit a three-decade high, we expect the Bank to respond with more tightening this year than most anticipate.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.