Japan's Central Bank released a research paper indicating that it is still considering raising interest rates.

On August 20, Jin10 Data reported that two research papers released by the Japanese Central Bank on Tuesday emphasized the persistent inflationary pressure in the economy, indicating that there is still reason to raise interest rates again. The report emphasized the potential impact of Japan's long-term labor shortages on wages and the behavioral changes of companies in pricing in the service industry. One paper on service prices pointed out: 'As wage pumping pressure intensifies, corporate pricing behavior is changing,' and it is important to investigate whether this phenomenon will further spread through comprehensive analysis. A paper on the impact of labor shortages emphasizes that structural changes in Japan's labor market may give workers more bargaining chips to demand higher wages. After the improvement of labor market liquidity and the connection between formal and part-time wages is becoming apparent, companies' wage-setting behavior may become more active. These two research papers once again remind people that even though the hawkish signal from Mr. Ueda last month to some extent triggered a global financial market dumping at the beginning of August, raising interest rates is still worth considering.