Japan’s unemployment rate has plunged to its lowest level in almost eight years, government figures showed on Friday, confirming the country’s continuing economic recovery and pointing to a further strengthening of inflationary pressure.

The strong employment numbers give ammunition to the hawks at the Bank of Japan who want to raise interest rates as soon as possible. The central bank last month ended its ultra-loose monetary policy but has kept rates virtually at zero. Many analysts think the BoJ could raise rates as soon as this summer.