BoJ’s Ueda: No statistical evidence that interest rate levels have direct correlation with wage moves

Bank of Japan (BoJ) Governor Kazuo Ueda said on Wednesday, “there is no statistical evidence that interest rate levels have a direct correlation with wage moves.”

Additional quotes

Longer run, it's important to heighten labor productivity to push up inflation-adjusted real wages.

As for monetary policy, it can help raise wages via tighter labor market conditions by keeping real interest rates low and stimulating economy.

We don't necessarily need to wait until real wages actually turn positive in exiting YCC, negative rates.

If we think there is strong chance real wages will turn positive in the future, that may be sufficient in making decision on whether to continue with YCC, negative rate.

We need to confirm whether pass-through of import prices dissipate, and whether wage-inflation cycle kicks off as we expect, when asked on what conditions need to be met to end YCC, negative rates.

Market reaction

USD/JPY was last seen trading at 150.46, still up 0.08% on the day.