Momma: BoJ will wait until August to calibrate salaries – MNI

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Kazuo Momma, former chief economist at the Bank of Japan, said in an interview with MNI on Wednesday that the Bank of Japan (BoJ) will have to wait until August to know for sure if wage increases are gaining traction.

Additional comments

“As for wages, the most typical data is the government’s monthly labor survey. The BoJ focuses on macroeconomic data and the bank cannot assess global wages with only one month of data.”

The BoJ needs to examine the salary data for the April-June period to determine how the salary trend has changed.but June wage data won’t be available until early August.”

“Bank officials are also closely monitoring the process of the spring wage negotiationswhich offer very important information, and the magnitude of the wage increases in fiscal year 2023.”

“Aside from government subsidies, the yoy rise in consumer prices in japan is likely to fall as import prices are falling.”

“Manufacturing may weaken as a result of slowing overseas economies, but overall economic recovery is expected to be stable.”

“Food and drink, accommodation and various event services that had been restricted (by the government) will be activated.”

“Meanwhile, the BoJ survey showed that Household circumstances are worsening amid high prices“.

Source: Fx Street

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