Japan must focus on improving wage growth to pave the way for sustainable inflation, Bank of Japan board member Asahi Noguchi said on Thursday, signalling that the central bank must retain its monetary easing policy for the time being.
Noguchi, known for his reflationist views, made the remarks in a speech to business leaders in Niigata, north of Tokyo, calling the more than 3% wage hike rise agreed upon earlier this year, the highest in 30 years, as “significant”.
“The biggest focus now is whether this (wage growth) momentum will be maintained or not from now on as well,” he said. “The BOJ’s mission for the time being is to realise it through patient monetary easing.”
Source: Zawya
