BoJ Governor Haruhiko Kuroda told the parliament today that inflation remains subdued in Japan because of the delay in recovery from pandemic, the public’s deflationary mindset and firms’ assumption that prices won’t rice much.
“In Japan, nominal wages haven’t risen much. It’s hard to see inflation sustainably reach our 2 per cent target unless wages rise in tandem with prices,” he said.
“It’s important to maintain powerful monetary easing to support the economy, and help generate steady wage and price growth.”
