BoJ’s Nakamura: Personally not confident about sustainability of wage growth

Bank of Japan (BoJ) board member Toyoaki Nakamura said on Thursday that “Personally (he is) not confident about the sustainability of wage growth.”

Additional comments

We are at critical phase where we must check many data, cautiously adjust degree of monetary support in accordance of improvement in the economy.

Hopes of the US soft landing heightening but there are signs of economic slowdown.

Japan’s economy recovering moderately although showing some weak signs.

Japan’s consumption lacks momentum.

I personally see chance inflation may miss 2% from fiscal 2025 onward.

My growth forecast is below board median due to chance consumers may hold off on spending, capex may be postponed.

Japan’s economy has yet to move on course for a stable growth path.

Structural changes in Japan’s economy required inflation to stably hit 2%, which will take a significant amount of time.

Smaller firms’ profitability, pass-through of rising cost, progress made in capex and wage hikes, households’ spending are among key factors i will look at.

Adjustment to easy monetary policy will proceed gradually, as the economy is expected to head toward a growth path.