More comments by BOJ governor Haruhiko Kuroda
- Doesn't think planned sales tax hike will have big impact on the economy
- Closely watching the extent of spring wage rises/negotiations
- Doesn't expect a big slowdown in the global economy
Given how much they're playing down the potential setback from the proposed sales tax hike later this year, markets will not be expecting a repeat of what happened back in 2014 then.
Meanwhile, the spring wage negotiations tend to take place around the beginning of March and companies will lobby changes to their compensation package to employees. Japanese officials are hoping for a substantial jump in pay to help boost their efforts towards reaching the 2% inflation target but companies have been relatively reluctant to play ball, with some opting to increase "other benefits" rather than basic pay last year.
