BOJ Board Member Calls for Wage Growth to Sustain Inflation, Cautions Spending May Fall if Wages Lag Prices

BOJ board member Noguchi says Japan must focus on improving wage growth to achieve sustainable inflation. Calls 3% wage hike this year significant.

Says BOJ's mission is to realize wage growth through patient monetary easing. Analysts say comments align with consensus BOJ view.

Notes rising household inflation expectations, but says spending may fall if wage growth lags price hikes. Sees inflation slowing later this fiscal year.

Under YCC policy, BOJ targets short-term rates at -0.1% and 10-year bond yield around 0%. Speculation it may tweak YCC as inflation exceeds target.

Noguchi previously said no need to change YCC operations now. BOJ next meets Oct 30-31 to update growth and inflation forecasts.