Kuroda expresses hope for larger pay hike

November 7, 2017

Nagoya- Bank of Japan Governor Haruhiko Kuroda expressed on Monday his hope for larger pay hikes in next year's "shunto" labor-management spring wage talks.

"I would not be surprised if the pace of wage increase is higher than this year," given robust corporate earnings and labor shortages, Kuroda said at a press conference in Nagoya, central Japan.

"I'm hoping for positive labor-management negotiations," he added.

Kuroda said the positive factors needed for higher wages are nearly in place, including rising prices.

On monetary policy management, Kuroda said that the BOJ aims for a virtuous circle of gradual increases in price rises, accompanied by wage growth.

The BOJ can achieve its 2 percent inflation target by continuing the current policy of controlling both long- and short-term interest rates, he said, rejecting calls for taking additional monetary easing measures.

On Federal Reserve Governor Jerome Powell's nomination as the next chair of the US central bank, Kuroda said that he thinks Powell will steer monetary policy appropriately to ensure price stability. Jiji Press