The Bank of Japan (BoJ) published a full version of its Quarterly Outlook Report on Thursday, highlighting that “there is chance wages, inflation may overshoot expectations, accompanied by heightening inflation expectations and tight labor market.”
Additional takeaways
Price-setting behavior changing in service-sector firms as a whole.
Must scrutinize whether this year's strong wage negotiation outcome would be reflected in service prices.
Big firms' positive wage-setting behaviour spreading steadily to smaller firms.
Market reaction
USD/JPY was last seen trading down 0.09% on the day at 149.80, unperturbed by the above headlines.
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