Bank of Japan Governor Haruhiko Kuroda urged corporates to raise wages as the labor market conditions tighten.
The labor market conditions are expected to further tighten, exerting upward pressure on wages accordingly, he said in a speech in Nagoya on Monday.
Kuroda noted that corporate profits have been at a level close to record highs, and labor market conditions have tightened, as evidenced by the fact that the unemployment rate has declined to around 3 percent.
Under these circumstances, the environment for wage increases is certainly well established, he told business leaders.
Kuroda observed that the momentum toward achieving the 2 percent target is somewhat weaker than the previous outlook, and thus developments in prices warrant careful attention going forward.
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