The Bank of Japan is holding a monetary policy meeting for two days starting from the 22nd.
The Bank of Japan is willing to change its policy if it can foresee the achievement of the 2% price stability target in conjunction with wage increases, but it has said that uncertainties remain, such as movements in wage increases at small and medium-sized enterprises, and trends in prices and wages. The focus will be on how to indicate the direction of policy through discussions.
The Bank of Japan's Monetary Policy Meeting was held on the 22nd, with Governor Ueda and other members of the Policy Board holding their first day of discussions.
With the rate of increase in the consumer price index exceeding 2% for 1 year and 9 months in a row, financial markets are paying close attention to the timing of the Bank of Japan's lifting of its negative interest rate policy.
In an interview with NHK last month, Governor Ueda cited two points as key points in deciding whether to change policy: trends in wage increases during the spring labor unions and the impact of past wage increases on prices. It has also been reported that there is a high level of uncertainty regarding the spread and level of wage increases, especially among small and medium-sized enterprises.
At the meeting, opinions are likely to be exchanged on topics such as how to view trends in wage increases ahead of the spring labor union and the economic impact of the Noto Peninsula earthquake.
In addition, in order to announce the three-year price outlook, the Bank is also expected to examine the impact of the decline in import prices such as crude oil, the status of companies' pass-through of price changes, and developments in financial markets such as stock prices and the yen exchange rate.
After the second day's meeting on the 23rd, the Bank of Japan will announce its immediate operating policy and Governor Ueda will hold a press conference, but how will the direction of policy be indicated after discussions on trends in prices and wages? will be the focus.