After years of massive stimulus, Bank of Japan Gov. Haruhiko Kuroda has placed wage growth at the center of debate over whether potentially market-jolting policy change looms at the central bank.
Kuroda has insisted that the BOJ’s ultraloose policy must continue until there are signs inflation can be sustained by stronger pay gains.
Some of Japan’s biggest companies, including Suntory Holdings and Uniqlo-operator Fast Retailing, are already making moves to ramp up wages by much more than usual as inflation hits a four-decade high. If this early momentum gains traction, the economy appears headed for an inflection point that may be used to justify change under a new BOJ governor set to take on the role in April.