2023-04-16 07:27:00
WASHINGTON (Archyde.com) – International Monetary Fund (IMF) director of Japan review, Ranil Salgado, said in an interview with Archyde.com on the 15th that the Bank of Japan’s Yield Curve Control (YCC) policy The outlook for sustained domestic wage growth has strengthened, he said, and there may be room to tweak the long-term interest rate target later this year.
Salgado said this year’s spring labor offensive may be changing Japan’s wage dynamics with better-than-expected results. He said it will be important to watch whether small businesses follow the wage hikes or whether companies continue to raise wages next year and beyond.
“From our point of view, barring a global shock, next year’s spring labor offensive should go pretty well,” he said.
Achieving a sustainable 2% inflation rate is not yet in sight, so the ultra-loose monetary policy needs to be maintained, but if the BOJ is confident of a sustained acceleration in inflation and wage growth, a long-term He said the interest rate target might be fine-tuned.
He said that as long as short-term interest rates are zero or slightly negative, monetary policy can remain accommodative even if the long-term interest rate target is fine-tuned.
When asked if the conditions for fine-tuning the long-term interest rate target might be met by the end of the year, he said, “Our personal view is yes,” and added, “We have already advised (the BOJ) to think regarding that. ‘ said.
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