Capital Economics Asia‑Pacific head Marcel Thieliant said the Bank of Japan's
tankan survey strengthens the case for faster rate hikes. The large
manufacturers' sentiment index jumped to +22, its highest since the global
financial crisis; large non-manufacturers' Q1 sentiment is at its strongest
since the early 1990s, nudging from +36 to +37. Five‑year inflation expectations
rose from 2.5% to 2.6%, supporting Bank of Japan board members who have warned
of upside inflation risks.
