Keidanren is a significant organisation in Japan with close links to Japan’s ruling Liberal-Democratic Party. It provides advice to the government on economic issues.
Its calling on its members to raise workers’ pay.
Higher pay is what the Bank of Japan is watching for to reduce its monetary easing policy. In particular, negative interest rates can be phased out once wage hikes and inflation are sustainable say Bank officials. Once the BOJ is convinced wages will accelerate and help stabilise inflation around it 2% target the Bank has said it’ll reduce policy accommodation.
Annual wage talks between major firms and trade unions will be concluded in mid-March.
Info via Reuters report
This article was written by Eamonn Sheridan at www.forexlive.com. Source