Japan business lobby urges member firms to increase pay

The Japan Business Federation will urge member companies to raise pay next spring according to a report in the Nikkei.

-

Bank of Japan Governor Kuroda has been talking about higher wages fuelling inflation. I pointed this out last week here:

• USD/JPY is a touch lower after the BOJ statement - minor crack in BOJ resolve?

He said it again yesterday:

• the upward revision in the BOJ's October report reflects our view that prices are likely to gradually rise accompanied by wage hikes

This is a significant change from Kuroda and the Bank of Japan. Now Japan Inc (business branch) is getting involved.

Take careful note folks, this is laying the groundwork for a change in policy from the Bank. Its not imminent but it is coming.