Japan chief government economist Hayashi is out with some comments that highlight the importance of incoming wage data.
- If this year’s wage growth exceeds that of last year, we’ll likely see positive wage-inflation cycle kick off
- To declare permanent end to deflation, we must ensure Japan won’t revert to deflation and that is difficult to judge
- BOJ’s current monetary policy framework that sets 2% inflation target is ‘very important’ for gov’t and public
- Importance of government and BOJ joint statement will not change even upon possible BOJ policy shift
The market sees a high likelihood of the BOJ hiking rates back to 0% at the end of April, with a 25% chance it happens at the March 19 meeting.
This article was written by Adam Button at www.forexlive.com. Source