MNI BRIEF: BOJ Wants More Wage Data, US Econ Outlook – Ueda
MNI (TOKYO) - Bank of Japan Governor Kazuo Ueda told reporters Thursday that the BOJ needed to see more wage data and the outlook for the U.S. economy before deciding on the next rate hike, following the Board’s decision to hold the policy rate at 0.25%.
Heightened uncertainty over the U.S. economy including the effects of President-elect Donald Trump’s economic and trade policies, and wage hike momentum drove the Board’s decision, he explained.
On a potential January hike, Ueda said a certain level of wage momentum and the outlook for the U.S. economy will become clearer at the next meeting and the BOJ will make a comprehensive judgment based on available data and information at that time.
“I would like to see one notch data,” he said, pointing to the wage-hike momentum the Board would need to see to gauge the strength of wages and prices.
Ueda, however, said the BOJ was not awaiting any one specific data point in regard to policy decisions, adding the Bank is also carefully watching the impact of foreign-exchange rates on prices.