Investing.com - Bank of Japan Governor Haruhiko Kuroda on Monday urged companies to hike wages in line with the central bank's 2% sustained inflation target and said fiscal and monetary measures will remain keys to boosting the economy.
"In the course of Japan's economy experiencing such a significant change, making proactive investment in human capital, including determining wages based on the 2% inflation benchmark, will benefit individual firms in terms of medium-to long-run management, not to mention that it is crucial for Japan's economy as a whole."
The governor also repeated that the momentum toward achieving the 2% inflation target is "somewhat weaker" than the previous outlook, and thus that developments in prices warrant careful attention going forward.
"The BOJ will pursue powerful monetary easing and make policy adjustments as appropriate, taking account of developments in economic activity and prices as well as financial conditions, with a view to maintaining the momentum toward achieving the price stability target of 2%," he said.
At its latest policy meeting on Oct. 31-Nov. 1, the BOJ board decided to stand pat on monetary policy in a seven-to-two vote, retaining the yield curve control target it adopted in September even as it pushed back the estimated timing of achieving 2% inflation to "around fiscal 2018" from "during fiscal 2017" previously.