Wage growth continues to accelerate and all signs point to this year's Shunto delivering another strong pay hike. However, the Bank of Japan wants to see more clarity on US economic policy and we suspect it will also want to wait for the preliminary results of the Shunto due in mid-March before tightening policy further. The upshot is that we're sticking to our view that the next rate hike will happen at the Bank's March rather than at its January meeting.
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