MNI BRIEF: BOJ Needs More Than One-Off Wage Hikes -Wakatabe

Bank of Japan Deputy Governor Masazumi Wakatabe said on Thursday that one time wage hike weren't sufficient for the BOJ to assess the likelihood of achieving its 2% price target in a stable and sustainable manner.

Wakatabe told reporters that wage hikes this spring will be very closely watched and are important, but wage hikes this year alone aren't enough for the BOJ to decide on the inflation outlook.

When asked about possible policy tweaks under the BOJ governor who takes office in April, Wakatabe declined to directly comment but he said the BOJ under the new governor should achieve the stability of prices and the financial system as a mandate. He said it is more important for the BOJ to carry out the current easy policy than reviewing monetary policy over the past 10 years.

Wakatabe’s term ends on March 19 and BOJ Governor Haruhiko Kuroda’s term ends on April 8.