Boj Policymakers See Wage Hikes As Key To Inflation Goals
Policymakers at the Bank of Japan see higher wages as key to reaching a sustainable inflation target of 2 percent, according to the minutes of the BOJ's June policy meeting.
The two-day meeting through June 17 resulted in a decision to maintain massive monetary easing.
Many members of the policy board said pay hikes are important for reaching their price-stability goals.
One member said rising household purchasing power is necessary for private consumption to continue expanding, even when businesses change selling prices.
Another member said the BOJ should continue with monetary easing until a rising wage trend is certain.
Some policymakers agreed inflation expectations have risen. One said this is a reflection of "unprecedented supply shocks" triggered by the coronavirus pandemic and the Ukraine conflict.
Another noted "signs of change" in the mindsets of many people, who thought prices and wages would not rise.