Japan business lobby Keidanren chief Tokura:
- share view with
labour unions on need to achieve structural wage hike
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Keidanren is a significant organisation in Japan with close links to Japan’s ruling Liberal-Democratic Party.
It provides advice to the government on economic issues.
Higher pay is what the Bank of Japan is watching for to reduce its monetary easing policy. In particular, negative interest rates can be phased out once wage hikes and inflation are sustainable say Bank officials. Once the BOJ is convinced wages will accelerate and help stabilise inflation around it 2% target the Bank has said it’ll reduce policy accommodation.
Annual wage talks between major firms and trade unions will be concluded in mid-March.