Japan Seeks Sustainable Wage Growth With Central Bank Help

Prime Minister Fumio Kishida said closer macroeconomic policy coordination is needed with the Bank of Japan as the government seeks to examine whether Japan can attain sustainable and stable wage growth and avoid sliding back into deflation, Kyodo News reported.

Photo Insert: The remarks by Kishida, who has a goal of realizing both economic growth and redistribution of income, come as the BOJ also views wage growth as vital.

While the outcome of this year's wage negotiations between labor unions and management is expected to be the best in three decades, Kishida said spurring wage increases remains his administration's "highest priority."

The remarks by Kishida, who has a goal of realizing both economic growth and redistribution of income, come as the BOJ also views wage growth as vital.

In its first policy guidance since Governor Kazuo Ueda became governor last month, the central bank added a specific reference to the need for pay hikes in attaining its 2 percent inflation target.

"We need to foster perceptions that Japan will not return to deflation. We will achieve an exit from deflation and sustainable economic growth led by the private sector," Kishida told a meeting of the Council on Economic and Fiscal Policy, Mainichi Japan also reported.

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