Free Trial

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

(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

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.