MNI BRIEF: BOJ Report Shows Mixed Wages View
MNI (TOKYO) - Japanese businesses have provided a mixed picture on wage hikes this year, with some reporting increases to ensure necessary workers amid the labour shortage, while others have noted no, or reduced hikes, the Bank of Japan’s regional economic report showed on Thursday.
The BOJ wants to see clear wage hike momentum so it can raise the policy interest rate, but uncertainties over the scale of wage hikes at smaller firms could impede any rate hike chance when the board meets over Jan 22-23. (See MNI POLICY: BOJ Sees Rice, Labour Driving Stronger CPI)
Respondents to the BOJ's report were varied. A metal hardware firm in Takamatsu city is considering aggressive wage hikes funded by increased sales prices, while a supermarket store in Hakodate city reported plans to raise wages as much as last year by cutting costs.
However, a transportation firm in Fukushima city plans to reduce the scale of wage hikes this year as the pace of transferring high costs has failed to match wage hikes, while a transportation machinery firm will not raise wages as orders are set to fall due to poor sales of automobiles to China, the report showed.