Bank of Japan rate hike in March looks likely, but uncertainty remains
Odaily reports that the Bank of Japan's branch manager meeting this week supported the forecast of Nomura Securities analyst that the Bank of Japan will raise interest rates in March rather than January. The meeting emphasized that more and more companies recognize the need to continue raising wages, indicating that wages may increase by 2025. However, Nomura Securities analysts such as Kyohei Morita wrote in a report that this does not necessarily prove that wage increases are becoming more widespread. Looking ahead, analysts expect the economy to be driven by private consumption supported by wage increases and software investment capital expenditures, making economic activity more "localized". However, uncertainties remain, including risks from political developments, domestic labor shortages, and geopolitical tensions abroad. (<金十>)
