-
Japan Wage Gains of 4% to Pave Way for BOJ Hike, Ex-Official Says
The Bank of Japan is likely to be encouraged by stronger annual wage negotiation results that will pave the way for the end of its negative interest rate by this spring, according to a former BOJ executive director in charge of monetary policy. “There’s a good chance the outcome of spring wage talks will be higher than last year by reaching 4%,” Eiji Maeda, the former director, said in an interview. That’s because the positive price mechanism the central bank has been seeking to confirm is already in operation, he added. “A virtuous cycle between wages and inflation is already in place.” Market players ... (full story)