Central Banks
Ueda Hints at Chance of Policy Shift Before Real Wages Increase
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Governor Kazuo Ueda signaled that a prolonged decline in real wages won’t necessarily keep the Bank of Japan from shifting toward normalization as long as its inflation target comes into sight.
“If I’m asked whether real wages must be positive when we decide how long we continue with yield curve control and negative interest rates, it’s not necessarily so,” Ueda said in response to questions in parliament Wednesday. “It’s about whether we can forecast with certainty that real wages will be up amid a positive economic cycle.”