- Strong momentum of wage hikes spreading to smaller companies
- Need to carefully monitor developments in wages
- Must scrutinise wage trends
- Aware that rising prices are having a negative impact on households
- Underlying inflation remains below 2%
- But need to be wary that rising prices could change households’ inflation expectations
- Will carefully look at economic, price trends
The takeaway here seems to be that he’s not pushing the narrative too hard. The spring wage negotiations seem to have played out as expected but Ueda is not forcefully using that as a springboard for May, at least not with these remarks. USD/JPY is seen up 0.4% to 149.93 currently, at the highs for the day.
This article was written by Justin Low at www.forexlive.com.