Industrial production has been falling for several months, and unemployment has started to rise again. If past experience is any guide, the unemployment rate will continue rising towards 4% by the end of the year even if output starts to recover soon. In that case, wage growth is likely to slow and the Bank of Japan will feel added pressure to ease policy further.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services