Japan DPP head says BOJ should avoid big policy change now b/c real wages standing still

I posted earlier on the talks to bring the Democratic Party for the People (DPP) into coalion with the LDP and Komeito:

• Japanese PM Ishiba is reportedly seeking a coalition with DPP

I wondered aloud if DPP would demand an end to BOJ rate hikes as a price for its support. Seems so, yeah.

Japan Democratic Party For People Head Tamaki:

• BOJ should avoid big
  policy change now with real wages still at standstill
• If there is
  certainty that wage growth will exceed 4% at next year’s wage
  negotiations, BOJ can review monetary policy
• Want policymakers to
  scrutinise whether real wages stably turns positive in guiding
  fiscal, monetary policy

USD/JPY update, on its session lows:

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This article was written by Eamonn Sheridan at www.forexlive.com.



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