MNI BRIEF: BOJ's Kuroda: Watching Wage, Longer Inflation Views

Bank of Japan Governor Haruhiko Kuroda said on Friday that medium- to long-term inflation expectations and wage gains are being closely watched.

“For the underlying inflation rate to rise, the inflation driven by energy prices needs to shift to a ‘broad-based’ and ‘sustainable’ inflation accompanied by increases in corporate profits and wages,” Kuroda told business leaders.

“In this regard, short-term inflation expectations of households, firms, and market participants have risen clearly recently through the mechanism of adaptive inflation expectations formation that reflects the rise in energy and other prices,” Kuroda said, adding, “The BOJ will pay close attention to whether these developments will spill over to medium- to long-term inflation expectations and in turn raise wage inflation.”