Keidanren Calls for Wage Hikes, Paving Way for BOJ Policy Shift

Outcome of spring wage talks could lead to end of Japan's negative interest rate policy.

Japan's biggest business lobby, Keidanren, is calling for wage hikes this year that exceed the inflation rate.
The outcome of the annual wage talks, due to conclude in mid-March, could pave the way for the Bank of Japan (BOJ) to exit its ultraeasy monetary policy.
Former BOJ executive director Eiji Maeda suggests that wage gains of 4% could encourage the BOJ to end its negative interest rate by this spring.
Prime Minister Fumio Kishida, BOJ Governor Kazuo Ueda, Keidanren chief Tokura and Rengo head Tomoko Yoshino are all advocating for pay raises that exceed last year's 3.6%, which was the highest in three decades.
Small firms, which employ seven out of 10 employees, are expected to enter their labour talks after big firms conclude their negotiations in March.