BOJ polling firms on wage hike plans – Reuters

By FXStreet FXStreet (Mumbai) – As Reuters reports, the Bank of Japan (BOJ) is polling firms nationwide on their plans to raise wages, with results due out before a key rate review late next month, underscoring concerns over whether firms will increase pay in a bit to push up price pressures.

Wage growth is central to the BOJ’s goal of achieving 2% price target, as higher wages give consumers more money to spend, allowing firms to raise prices.

Reflecting the BOJ’s close attention to wage growth, all 32 of the central bank’s regional branches will be carrying out the survey, sources familiar with the matter said. The survey’s findings will be part of the BOJ’s quarterly report on the economic health of regional areas in Japan, due out roughly two weeks before the BOJ rate review on Jan 28-29.
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Source:: FX Street