BOJ minutes – discussed if wage hikes would continue while profits weak for many firms

<p>Nothing in these is a game changer. Headlines via Reuters:</p><ul><li>
Members agreed it was important to check whether wage hikes will
continue next year and onward</li><li>
a few members said chance of firms
continuing to raise wages next year was high</li><li>
one member said
there was strong chance corporate wage, price-setting behaviour will
be sustained</li><li>
one member said must check whether wage rises will
broaden as 60% of Japan's small, medium-sized firms run red ink and
have weak profit standings</li><li>
one member said inflation could
overshoot expectations as change in corporate behaviour broadens</li><li>
one
member said wages, sales prices could rise at pace unseen in past</li><li>
one
member said many small, medium-sized firms say they have trouble
passing on rising costs, which could mean wage growth could lose
momentum</li><li>
members agreed the BOJ must maintain current monetary
easing to stably, sustainably hit price target</li><li>
many members said
Japan has stable, sustained achievement of price target, accompanied
by wage growth, was not yet in sight</li><li>
one member said there was
still big distance before tweaking negative rate policy</li><li>
One member said the BOJ must sustain YCC framework in line with
commitment it has made in its statement</li><li>
one member said now is
time to wait for trend inflation to heighten</li><li>
one member said the BOJ could gain clarity in Jan-March next year to determine whether Japan
can sustainably hit price target</li></ul><p>Full text:</p><ul><li><a href="https://www.boj.or.jp/en/mopo/mpmsche_minu/minu_2023/g230728.pdf" target="_blank" rel="nofollow">Minutes of the Monetary Policy Meeting on July 27 and 28, 2023</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.