Bank of Japan Governor Kuroda crossing the news wires:
- BOJ must maintain ultra-easy policy to support economy, create environment for firms to hike wages
- expects wages to rise quite significantly due to very tight job market
Kuroda has stressed time and again he wants wages to rise to pull up demand and inflation. He says current inflation levels in Japan are due to cost factors and are transitory only. Wages rising and greater demand is needed to cement inflation in a more stable manner. The BOJ expectes CPI in Japan to begin dropping from around September/October.