By Megumi Fujikawa
Bank of Japan Gov. Kazuo Ueda said Wednesday that the bank could consider unwinding its monetary easing before the pace of wage growth exceeds that of inflation.
The central bank could tweak its yield curve control or negative interest rates before inflation-adjusted wages turn positive, Ueda said in Parliament on Wednesday. Before making such a decision, the bank needs to be confident “with sufficient certainty” that the virtuous cycle of wages and prices are working, he added.
Wages adjusted for inflation declined in September for the 18th straight month.
Write to Megumi Fujikawa at [email protected]
This article was originally published by Marketwatch.com. Read the original article here.