Masaaki Kanno Wages Quotations

Japan will maintain growth driven by demand at home, particularly by solid consumer spending, as the labor market is becoming tight, propping up wages and household incomes. Upward pressure on prices will intensify next fiscal year, when the employment situation will become much tighter.

Consumption is strong and wages are rising, so the CPI trend is improving. In six months, deflation will be over.

The Bank of Japan will probably end its zero-rate policy in July or August. If the labor market becomes tighter and gains in wages and consumer prices pick up momentum, the bank may have to make another rate increase by the end of this year.