BOJ Policy Hinges on Developments in Next Round of Wage Talks

Economists and investors looking for catalysts to prompt the Bank of Japan to pare back stimulus are keeping a close eye on wage growth, a key factor cited by the central bank for achieving its goal of sustainable inflation.

While the country’s largest union federation secured the biggest pay increases in three decades this year, BOJ Governor Kazuo Ueda likely wants to see more evidence of lasting wage growth before he calls time on one of the world’s most ambitious monetary easing programs.