BOJ Kuroda: Cost inflation without wage increases will not maintain inflation target

  • Impossible to maintain 2% inflation on cost inflation alone
  • The BOJ seeks to reach a situation where inflation rises moderately alongside rising corporate profits, wages
  • Inappropriate to tighten policy, withdraw stimulus even as energy and commodity costs drive up inflation
  • Inflation expectations and wage growth remain subdued, meaning cost inflation will have a negative economic impact

A few token remarks from Kuroda, but yeah, maybe we can expect inflationary pressures to increase a bit more in Japan given the current global energy market situation. That said, it won’t do much to really convince the BOJ to surely move away from its current policy stance.


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