MNI BRIEF: BOJ Studying Wage Growth Pace - Ueda

Bank of Japan Governor Kazuo Ueda on Friday said the bank is collecting data to assess the initial momentum for wage growth in fiscal 2026 and intends to use this information in policy decisions at or after the next policy-setting meeting.

Ueda told lawmakers that the probability of achieving the 2% inflation target is gradually increasing, as downside risks to the U.S. economy have eased somewhat.

He added that the bank needs to monitor whether downward pressure from trade policy impacts on corporate profits is negatively affecting corporate wage- and price-setting behaviour. 

Ueda also reiterated the BOJ’s baseline stance that the policy rate will be adjusted to calibrate the degree of monetary easing in line with improvements in economic and price conditions, while real interest rates remain very low.

BOJ Executive Director Kouji Nakamura, who oversees monetary policy, said underlying CPI inflation is gradually moving toward the bank’s 2% target, without citing specific figures. (See MNI POLICY: BOJ To Phase Out Underlying CPI Gradually)