BoJ’s policy path hinges on complex wage format

Fine balance: A man walks past the BoJ’s headquarters in Tokyo. The bank has said pay increases of 3% would support sustainable inflation of 2%, but it isn’t clear how widespread the gains need to be or which wage indicator might trigger a policy shift. — Reuters

TOKYO: Bank of Japan (BoJ) governor Haruhiko Kuroda has placed wage growth at the centre of debate over whether potentially market-jolting policy change looms at the central bank after years of massive stimulus.

Kuroda has insisted that the BoJ’s ultra-loose policy must continue until there are signs that inflation can be sustained by stronger pay gains.