BoJ Survey: Japan on cusp of seeing big changes in corporate activity

The findings of a survey, conducted by the Bank of Japan (BoJ) to assess its past monetary easing measures, showed that Japan is on the cusp of seeing big changes in corporate activity.

Additional takeaways

Many firms said they can no longer hire enough workers if they curb wages.

More firms starting to pass on rising labour costs to sales prices.

Many firms regardless of size, sector, said an economy where wages and prices both rise is favourable for their business than that where wages, prices barely move.

BoJ’s monetary easing has underpinnned capex, corporate business activity by keeping borrowing costs low, improving availability of funds.

Some firms said they saw difficulty of hiring people, intensifying price competition as among side-effects of BoJ’s monetary easing.

Many big manufacturers cited FX moves as among effects that BoJ’s monetary easing had on their businesses.

Big manufacturers saw FX stability as biggest factor they wanted out of BoJ’s monetary policy.

Whether such changes in corporate activity broaden, become sustained would be crucial to Japan’s economic, price outlook.