BOJ’s Ueda Warns Global Problems Could Slow Wages and Inflation
Japan’s central bank chief, Kazuo Ueda, said inflation in Japan is moving closer to the target. But he warned that problems around the world, like weak jobs in other countries and trade tensions, could stop companies from raising wages.
Ueda explained that if global risks stay high, businesses might focus on saving money instead of paying higher salaries. This could slow down inflation and affect Japan’s economic growth.
He also said the Bank of Japan will act carefully with interest rates. They can raise rates if needed, but will be cautious because of uncertainty in the world economy.
After his comments, the yen fell a little as investors think the BOJ might wait before raising rates. Many are now watching global events to guess what the BOJ will do next.
Impact:
The BOJ may wait to raise rates until the global situation improves. Wage growth might stay slow, which could limit inflation. Traders and investors should keep an eye on worldwide economic news.