A wide range of Japanese firms see the need to continue raising wages due to structural labour shortages, the Bank of Japan said on Thursday.

The Bank of Japan indicated it sees progress in wage gains, while refraining from giving any clear hints on whether an interest rate hike is coming this month.

More Japanese companies are seeing the need to offer pay increases, the Bank of Japan said, the latest sign that the economy is making progress toward growth backed by higher wages.

Wage hikes are broadening in Japan as structural labour shortages have made firms more aware of the need to keep hiking pay, the central bank said, suggesting that conditions for a near-term interest rate hike were continuing to fall into place.