The Bank of Japan said that there is a possibility of realizing the prospect and raised the price forecast.

On January 24th, Jinshi Data reported that the Japanese Central Bank raised the interest rate to the highest point since the global financial crisis in 2008, which highlights the confidence of the Japanese Central Bank that wage pumps will stabilize the inflation rate near the target of 2%. The Bank of Japan said in a statement: “The possibility of realizing the Bank of Japan’s outlook has been rising.” Many companies have expressed that they will continue to steadily increase wages in this year’s annual wage negotiations. The decision of the Bank of Japan highlights its determination to steadily raise the interest rate to around 1%. In the view of analysts, this level will neither cool down the Japanese economy nor overheat it. In the quarterly outlook report, the Bank of Japan raised its price forecast because the prospect of expanding wage increases is increasingly optimistic and it is expected to continue to achieve the inflation target. Friday’s data showed that Japan’s core CPI accelerated in December, reaching the fastest year-on-year growth rate in 16 months. Bank of Japan policymakers have repeatedly stated that if Japan makes progress in promoting wage and consumption cycles that promote inflation rise, allowing companies to continue to pass on higher costs, the Central Bank will continue to raise interest rates.