20 Jan 2016
BoJ reportedly frustrated with wage negotiations
FXStreet (Bali) - Members from the Bank of Japan are getting increasingly fruustrated at the lack of progress on wage rises, Bloomberg reports, citing unnamed sources familiar with the discussions.
As Bloomberg reports: "Governor Haruhiko Kuroda has said publicly that pay raises have been muted given the tighter job market and surging corporate profits. His concern has been echoed by officials as the central bank’s board prepares for a Jan. 28-29 meeting, according to the people, who asked not to be identified as the talks were private."
At this juncture, and assuming further progress on wages can not be made, the BoJ might be forced to downgrade its inflation forecasts, delaying the expected timing to meet its 2% inflation target, which would add to previous postponements and will strengthen the case for potentially further easing by the BoJ at some stage in the future (risk near term remains low).
As Bloomberg reports: "Governor Haruhiko Kuroda has said publicly that pay raises have been muted given the tighter job market and surging corporate profits. His concern has been echoed by officials as the central bank’s board prepares for a Jan. 28-29 meeting, according to the people, who asked not to be identified as the talks were private."
At this juncture, and assuming further progress on wages can not be made, the BoJ might be forced to downgrade its inflation forecasts, delaying the expected timing to meet its 2% inflation target, which would add to previous postponements and will strengthen the case for potentially further easing by the BoJ at some stage in the future (risk near term remains low).