BOJ minutes – discussed if wage hikes would continue while profits weak for many firms

Nothing in these is a game changer. Headlines via Reuters:

  • Members agreed it was important to check whether wage hikes will
    continue next year and onward
  • a few members said chance of firms
    continuing to raise wages next year was high
  • one member said
    there was strong chance corporate wage, price-setting behaviour will
    be sustained
  • one member said must check whether wage rises will
    broaden as 60% of Japan’s small, medium-sized firms run red ink and
    have weak profit standings
  • one member said inflation could
    overshoot expectations as change in corporate behaviour broadens
  • one
    member said wages, sales prices could rise at pace unseen in past
  • one
    member said many small, medium-sized firms say they have trouble
    passing on rising costs, which could mean wage growth could lose
  • members agreed the BOJ must maintain current monetary
    easing to stably, sustainably hit price target
  • many members said
    Japan has stable, sustained achievement of price target, accompanied
    by wage growth, was not yet in sight
  • one member said there was
    still big distance before tweaking negative rate policy
  • One member said the BOJ must sustain YCC framework in line with
    commitment it has made in its statement
  • one member said now is
    time to wait for trend inflation to heighten
  • one member said the BOJ could gain clarity in Jan-March next year to determine whether Japan
    can sustainably hit price target

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This article was written by Eamonn Sheridan at Source