This follows the development from yesterday, in which top Japanese companies have agreed to their largest pay increases in decades after labour talks. The exact figure is still being sorted out but there are many calls - including this one - that is pinning it close to and around 3%, which would be the biggest since 1997.

In any case, this is a welcome development for incoming BOJ governor, Kazuo Ueda, as it at least allows him the flexibility to guide Japan out of the era of ultra easy monetary policy - under the right circumstances that is.