BOJ will not budge on easing to spur wage growth: deputy chief

That’s nice of them. Waiting for the new capitalism, waiting, waiting, waiting, oh well it’s premium Friday tomorrow.

The Bank of Japan will not waver in its monetary easing policy to promote more robust wage growth, a deputy governor said Thursday, noting its goal of achieving its 2 percent inflation target in a stable manner is still out of reach.

Kyodo and the BOJ are committed to promoting this adjunct of trickle down economics as a new capitalism.

QE monetary easing has only enriched financial institutions and associated shareholders, and has not moved wages upwards in decades.

"Wages are expected to rise for this fiscal year (from April). That said, their growth is not projected to exceed CPI inflation," Amamiya said.

BOJ: We will not budge from this policy that produces the opposite of our stated aim!

""For consumption to see a sustained expansion even after pent-up demand has waned, wages need to rise at a higher rate than the country's inflation rate, he added.""

Wages are NOT rising in most sectors, people are being squeezed left right and center, and the only way people know damn well how to fight back is to tighten the belts, close the wallets, then ride it out

Inflation here isn’t nearly as high or as extensive as in the other major economies and it’s probably temporary. It makes little sense to raise rates right now.

Too bad about the cheap yen, though.

Maybe it's because they cannot budge on monetary easing due to Japan's huge debt.

If they raise the interest rate even a bit it will impact on their repayments big time which are already more than Singapore's GDP a year.

Stuck between a rock and a hard place.

More robust wage growth is seen by the BOJ as a must to achieve the kind of inflation it wants to see.

*Even billionaires acknowledge the reality that monetary easing is a basic income for the wealthy as Kyodo, the LDP and BOJ gaslight the Japanese public.

https://twitter.com/mcuban/status/1318929147348090882

Says the person living on taxpayer funded income, that is multiple X the average person’s wage. As well he gets a nice pension and health coverage, something the 30%+ adults in Japan now DON’T get because the LDP made it was too easy to just hire temp and part time staff since approx 2001-ish.

One, real inflation is higher than the stated rate of inflation. Two, wages will not increase to meet inflation as companies won't increases wages enough as they tighten their purse strings employees wages are likey to be the last thing they spend money on. Three, not much point in if you can't score a full time Job anyway if you have no job security and companies keep making dodgy short term contracts your not likely to be in a position to splash cash around. Four, yield curve control has been used by the BOJ for so long now if they try anything apart from it they will break the entire system. Japanese people per captia have more debt than Venezuela and no assets that hold value... don't need to be a genius to figure out how this ends.

The FED and BOJ actions are meaningless. The QE by BOJ has been useless in successfully creating a 2% inflation target for 20 years.

This country is hard to understand a friend of mine who is a foreigner who had covid for a long time applied for the temporary loan of 300,000 yen due to lack of funds, and was denied twice even though they lost work from covid this country does not care at all about people, the NGO told him they couldn't understand why he'd been denied after accompanying him to the city hall to help him apply

long time applied for the temporary loan of 300,000 yen

Strange, your friend had to mess up badly!

I have a friend from Africa, he went to get a temporary loan for 200 000 yen to local government and got it right away.

He doesn't speak any Japanese whatsoever.

@William Livingstone What so hard about a country not approving a foreigner a loan. There's more to your/hiss story. You don't go to another country and expect a hand out unless you have some collateral. Perhaps he had family, why is that he couldn't get a loan from family members? If your family can't provide you a loan that right there tells you the ability to pay back is ZERO! Question was is a "GIVE ME or TEMPORARY LOAN?

This country is hard to understand a friend of mine who is a foreigner who had covid for a long time applied for the temporary loan of 300,000 yen due to lack of funds, and was denied twice even though they lost work from covid this country does not care at all about people, the NGO told him they couldn't understand why he'd been denied after accompanying him to the city hall to help him apply

@Larry Flint One would think that the reason your friend from Africa was given a "TEMPORARY" loan regardless of whether or not he could speak Japanese was he provided Collateral and had proved he had the ability to pay back.

I have a friend from Africa, he went to get a temporary loan for 200 000 yen to local government and got it right away. He doesn't speak any Japanese whatsoever.

They are continuing now so that they can gloat and claim that inflation is their success when in fact it will be due to the the global supply shortage and rising import costs due to weak yen.

It is wishful thinking by Kuroda when he hopes that by easing credit it will spur wage growth. Japanese Capitalists have historically exploited their labor force by holding down wages. Japan should be legislatively mandating a living minimum wage for males and females. It should also mandate equal pay for equal work and not exploit female workers. This Will result in more spending by consumers and will uplift the economy.

These central planners are insane.

They think they are god or something?

Sorry, but they cannot “adjust the dials“ and get the wages (and employment conditions more generally) they claim they want.

What this is really is bankrolling government spending, for as long as possible…

So the BOJ plan is just to keep hoping and wishing for wage increases? That is all I hear out of them. No concrete steps, no punitive actions for companies that don't raise wages. It just seems so childish and unprofessional. I wonder what other economists think about their monetary policy, not like they would ever listen to it.

Any foreigners thinking or hoping to receive benefits from the Japanese state had better think again-it ain’t happening…

No concrete steps, no punitive actions for companies that don't raise wages.

The BOJ doesn’t have the power to do that anyway, so blame them only for that which they are responsible for.

All they can do is mess with the money, and honestly, why they think they can control wages by messing with the money is unfathomable.

Various factors influence wages, and the BOJ can’t control much of it.

foreigners thinking or hoping to receive benefits from the Japanese state had better think again

Well the J state does splash out perks such as big tax breaks if you have a mortgage, and that goes for foreigners too.

As for wages, the absolute best way to get better wages is to be well educated and prepared to change jobs to get a job that pays a wage that one thinks one is worth (or at least capable of attracting). In any case the state doesn’t have a lot to do with that and BOJ money printing doesn’t either.