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Bank of Japan Governor warns of uncertain outlook for wages and prices

Original title: After maintaining negative interest rate monetary policy, the Governor of the Bank of Japan warned that the outlook for wages and prices is highly uncertain

Bank of Japan Governor Kazuo Ueda said on Monday that there is “very high uncertainty” about whether companies will continue to raise prices and wages, once again emphasizing the central bank’s determination to maintain ultra-loose monetary policy.

Kazuo Ueda also offered a cautious view on the overseas economic outlook, warning of the impact of sharp U.S. interest rate hikes and slow economic growth in China.

Kazuo Ueda said the key to the outlook for monetary policy is whether strong wage growth and consumption, rather than cost pressures from rising import costs, will become the main drivers of inflation.

“We are seeing some signs of changes in the behavior of companies setting wages and prices. But there is a lot of uncertainty about whether these changes will spread,” Kazuo Ueda said in a speech to business leaders in the western Japanese city of Osaka.

The Bank of Japan on Friday kept interest rates ultra-low and pledged to continue supporting the economy until inflation reaches its 2% target sustainably, signaling it is in no hurry to phase out its massive stimulus program.

Source: Zhitong Finance Return to Sohu to see more


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2023-09-25 16:57:00
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