Boj Worried Wages Not Keeping Pace With Inflation
Officials at Japan's central bank have revealed details of their thinking about inflation and monetary easing. They say there is a chance inflation could reach their target of 2 percent, but they are sticking with their massive monetary easing because wages are not rising in line with price increases.
On Tuesday, the Bank of Japan released a "Summary of Opinions" document outlining discussions at a two-day policy meeting earlier this month.
One participant said retail prices are not rising in tandem with costs, which suggests that domestic demand is too weak.
The bank's policymakers are targeting 2 percent inflation, but say that has to come with the public's expectation of inflation, as well as wage increases, for price stability.
The document makes it clear that bank officials think Japan is still some way off that.