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MNI BRIEF: BOJ's Kuroda Eyes 3% Wage Hikes To Hit 2% Target

(MNI) Tokyo
(MNI) TOKYO

Bank of Japan Governor Haruhiko Kuroda said on Friday that it is necessary for wages to continuously rise about 3% to achieve the bank's 2% price target in a stable and sustainable manner.

“Based on the assumption that productivity is around 1%. In order to achieve a 2% price target, wage hikes about 3% need to continue. But it may be changeable, depending on a tightening of the labor market and productivity,” Kuroda told lawmakers.

Kuroda and his colleagues have said that wage hikes at reasonable levels are necessary to achieve the 2% price target and they are paying attention to wage negotiations between management and employees next spring.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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