MNI BRIEF: Uncertainty Appears On Wages, Prices - BOJ's Ueda

Bank of Japan Governor Kazuo Ueda Monday noted a high degree of uncertainty existed over the spread of wage- and price-setting behaviour and the Bank will patiently continue with its easy policy.

He said some changes were observed, "but there are extremely high uncertainties as to whether these changes will become widespread,” Ueda told business leaders in Osaka City. “Sustainable and stable achievement of the price stability target of 2%, accompanied by wage increases, has not yet come in sight.”

He noted Japan’s economy had entered a critical phase in its aim to realise a virtuous wage-price cycle and the BOJ must nurture "the buds of change in the economy."

“With many firms withholding judgment at the moment about whether to continue with relatively high wage hikes next year and beyond, it is necessary to examine the extent to which changes in wage-setting behavior are sustainable,” Ueda added.