Investing.com - Bank of Japan Gov. Haruhiko Kuroda said Tuesday that wage growth remains "a bit weak" in comments to parliament that may signal ultra-easy monetary policy will remain in place until signs that paychecks are growing emerge as unemployment hovers around 3%.
Kuroda said that a "deflationary mindset"---a thinking that has taken root amid nearly two decades of weak growth and prices has kept companies wary of raising wages aggressively even in the face of labor shortages.
The BoJ has said wage growth is a key part of its aim to get prices above 2% annual increases ona sustained basis. But he repeated that the annual inflation target remains "distant."