Reuters Japan corporate survey:
- Only 7% of Japanese
companies believe PM Kishida’s pledge to have wages grow faster than
inflation is achievable -
61% of japanese companies see no need for govt to take
countermeasures against China’s excess production capacity
That 7% on wage rises is troubling for the Bank of Japan’s inflation goal – the Bank is relying on faster wage growth to propel demand-driven inflation.
Reuters converting the sentiment amongst most firms:
- “I’m afraid there are many mid-sized and small companies
that just can’t make ends meet if they implement wage hikes that
keep pace with inflation,” a manager at a wholesale company
wrote.
Half said the goal was not attainable while 43% said it was
hard to tell.
USD/JPY update, not a lot of movement:
This article was written by Eamonn Sheridan at www.forexlive.com.
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