Haruhiko Kuroda can now give his troubles a name: Toyota. It's hard to draw a kinder conclusion as the company that's benefited most from the central bank governor's easing policies offers its 63,000 union employees a measly ¥4,000 per month pay hike.
Kuroda stood pat at Tueday's BOJ policy meeting, despite warning that inflation could temporarily decline to zero percent if not go negative because of falling energy costs. The hope is that lower oil prices and annual raises, which are being negotiated between unions and corporations right now, will finally encourage Japanese to start spending again.
It's becoming clear, though, that Kuroda needs to worry as much if not more about a "deflationary mindset" among companies as consumers. Take Toyota, which makes more profit than all other Japanese carmakers combined. It's offering to raise monthly base wages by a piddling 1.1 percent, one-third less than what the Toyota Motor Workers' Union requested.