That is, with or without Shinzo Abe, Japan's sharply declining working-age population was always going to lead to a tight labor market, resulting in wage pressure and higher inflation. This risks a sharp spike in interest rates and a bond market rout, with investors fleeing amid concerns about the government's ability to repay its enormous debt load. Earlier this month, the BoJ held off from adopting more stimulus, citing a moderate economic recovery and progress towards its 2% inflation rate target (currently 1.3%).