Bank of Japan (BoJ) Governor Kazuo Ueda hit newswires early in the Friday market session, noting that the BoJ remains skeptical that Japanese inflation will be able to sustain 2% price growth.
- Recent recession is a rebound from strong quarters.
- Inflation is easing at a faster pace.
- Wage negotiations will offer a tailwind.
- Japan’s economy will continue to recover gradually.
- No change in view that Japan’s economy is to recover moderately.
- Japan’s economy not yet in a situation where sustained 2% inflation is foreseeable.
- Higher wage growth demand from labor unions YoY, big firms show interest in hiking wages.
- BoJ’s Ueda wants to consider collective outcome of wage talks and firm hearings before assessing wage data.
- Japan GDP was negative in Q4, but economy likely flattening after strong growth due to post-COVID reopening.
- Expects recovery in Japan’s consumption with solid results from spring wage talks.
- Soft landing in global economy, specifically the US, is becoming baseline view, which aligns with January projections.
