BOJ’s Ueda: Achievement of inflation target not yet in sight

By Thomson Reuters Feb 29, 2024 | 4:23 PM

By Leika Kihara

SAO PAULO (Reuters) -Bank of Japan Governor Kazuo Ueda said on Thursday it was too early to conclude that sustained achievement of the central bank’s 2% inflation target can be foreseen, stressing the need to scrutinise more data on the wage outlook.

“I don’t think we are there yet,” Ueda told a news conference after attending the G20 finance leaders’ meeting in Sao Paulo, when asked whether achievement of the price goal was already in sight.

“We need to confirm whether a positive wage-inflation cycle would kick off and strengthen,” Ueda said, adding that companies’ annual wage negotiations with unions later this month would be crucial in making the judgment.

Ueda also said there was no change to the BOJ’s view that Japan was on track for a moderate economic recovery with consumption likely to increase on expectations of higher wages.

With inflation having exceeded 2% for well over a year, many market players expect the BOJ to end its negative interest-rate policy either in March or April.

(Reporting by Leika Kihara; Editing by Leslie Adler)