The Bank of Japan said on Tuesday that it will begin preliminary research on including wage-related items in its quarterly “Tankan” business survey to more accurately reflect wage trends in the country’s monetary policy.
The central bank plans to conduct several preliminary surveys on wage growth as well as its economic outlook from September this year until June of next year, targeting about 1,500 companies, or one-sixth of the total 9,000 companies that participated in the Tankan survey.
A Bank of Japan official said that wage items are likely to be included in the Tankan survey within a few years.
The Bank of Japan publishes the results of the Tankan survey, or the Short-Term Economic Survey of Enterprises in Japan, in the months of April, July, October, and December. These surveys are among the most important economic indicators in Japan, as they assess the state of the Japanese economy by gathering companies’ views on their expectations for economic conditions, wages, and employment.
The Tankan wage survey focuses on the trends of Japanese companies regarding wages, asking companies about their expectations for wage increases or decreases in the near future. The results of this survey are significant as they provide insight into wage and employment trends in the Japanese market, which could influence the Bank of Japan’s monetary policy.
The survey results are usually published quarterly and are analyzed by economists and investors to understand companies’ expectations regarding the economy and wage levels in Japan.
In a move aimed at gradually phasing out radical stimulus, the Bank of Japan raised interest rates last month, driven by growing confidence that Japan is making progress toward achieving the 2% inflation target sustainably, supported by strong wage growth.
