Sticky wage growth may force BOJ to unleash further easing

Tokyo

FURTHER signs that the Bank of Japan may opt for more monetary easing at the end of this month appeared on Monday when the central bank signalled its disappointment over the slow pace at which Japanese firms are responding to government pressure to raise wages as a means to boost consumption and ward off deflation.

Sliding business confidence is making many companies wary about raising pay, the BOJ said, a comment that some analysts interpreted as meaning that the central bank could step in again with measures designed to boost corporate confidence.