MNI BRIEF: BOJ Takata Wary Of Weak Wage Hikes Amid Uncertainty

Bank of Japan board member Hajime Takata warned on Thursday that a sustainable level of inflation may not be achieved if wage hikes don't rise sufficiently due to a cautious outlook among companies.

“Wage hikes are important factor to achieve a virtuous cycle for the economy and prices and the starting point of corporate profits,” Takata told business leaders in Yokohama.

Takata warned of uncertainty over corporate wage-setting amid high uncertainties about the global economy. He is focused on whether businesses will raise wages sufficiently to offset high prices caused by the rise in import prices.

BOJ officials are paying attention to wage hikes in the spring wage negotiations by major firms, with data on the outcomes available around mid-March.