The governor of the Bank of Japan said on Friday:-
- When a sustainable and stable achievement of the price target appears on the horizon, we will study whether to maintain various easing measures, including a negative interest rate.
- The specific means of reducing the stimulus will depend on the economic conditions at the time.
- The country's monetary conditions will most likely remain accommodative even after the end of negative interest rates.
- The labor market is still tight.
- This is likely to cause companies to pass on higher costs through higher prices.
- We expect wages to rise slightly more than the inflation forecast of 1.8% for the fiscal year 2025.
- We would like to receive confirmation of the benign course of strengthening wages and prices.
All eyes are now on the outcome of the spring wage negotiations.
