BOJ Kuroda: Inflation pick-up must be accompanied by wage hikes

FILE PHOTO: BOJ Governor Kuroda attends a news conference in Tokyo
FILE PHOTO: Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan December 20, 2018. Mandatory credit Kyodo/via REUTERS

April 10, 2019

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Wednesday the central bank was seeking to create a condition in which any acceleration in inflation is accompanied by rises in corporate profits and wages.

“The BOJ isn’t seeking to push up inflation alone. We want to create a situation where wage and employment conditions improve too … and a positive economic cycle is created,” Kuroda told parliament.

Finance Minister Taro Aso told the same parliament committee meeting that pushing up inflation alone “won’t do any good,” as people’s livelihoods would not improve without increases in capital expenditure and wages.

(Reporting by Leika Kihara; Editing by Chang-Ran Kim)

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