Japan at major turning point in virtuous wage-price cycle: BOJ member

Japan is nearing a “major turning point” in setting in motion a virtuous cycle of price and wage hikes, Bank of Japan board member Asahi Noguchi said Thursday, though he added that monetary easing is still needed to achieve desirable inflation.

“For achievement of the (BOJ’s) 2 percent inflation target in a sustainable and stable fashion, nominal wage growth should clearly exceed 2 percent as an established trend,” Noguchi told business leaders in Niigata Prefecture, calling the biggest pay hikes in about three decades seen in this year’s wage negotiations a “breakthrough.”

“The biggest focus ...