© Reuters. Financial institution of Japan Governor Kazuo Ueda attends a press convention after its coverage assembly in Tokyo, Japan October 31, 2023, on this picture taken by Kyodo. Necessary credit score Kyodo through REUTERS/File Photograph
(Reuters) – The Financial institution of Japan maintained ultra-loose financial settings on Tuesday in a extensively anticipated transfer, underscoring policymakers’ desire to await extra clues on whether or not wages will rise sufficient to maintain inflation durably round its 2% goal.
Following are excerpts from BOJ Governor Kazuo Ueda’s feedback at his post-meeting information convention, which was performed in Japanese, as translated by Reuters:
CORPORATE WAGE POLICY
“The tankan showed labour conditions are tightening and corporate profits are increasing. Labour unions are demanding wage hikes exceeding those of this year. Executives of some big firms are commenting on prospects of higher wages… Our hearings, however, show many companies have yet to decide next year’s wage policy due to high economic uncertainties.”
WAGE-INFLATION CYCLE
“Some smaller firms appear to be struggling to pass on higher raw material and labour costs. The chance of trend inflation accelerating towards our price target is gradually heightening. But we still need to scrutinise whether a positive wage-inflation cycle will fall in place.”
COST- AND DEMAND-DRIVEN INFLATION
“The cost-driven inflation appears to be finally peaking. As for demand-driven inflation, service prices continue to be rising … Our view on the outlook for the latter remains unchanged.”
INFLATION TARGET
“The prospects for (sustainably achieving our price target) are gradually heightening. But in terms of whether the threshold would be met, we’d prefer to look at more data.”
