- Japan economy is recovering moderately
- The output gap has narrowed to near zero
- Some positive signs seen in wages and inflation
- But there is still high uncertainty on whether this cycle can strengthen further
For now, he doesn't want to build up market hopes on the potentially imminent policy shift by the central bank. But one thing is for sure, it is that policymakers have assured that we will get some form of push from the spring wage negotiations next year. The question now is whether that will actually be the real springboard for the BOJ to start tightening.
