TOKYO (Reuters) - Japan's top currency diplomat Masato Kanda said on Monday recent inflation and wage rises were overshooting expectations,
TOKYO (Reuters) – Japan’s top currency diplomat Masato Kanda said on Monday recent inflation and wage rises were overshooting expectations, suggesting that corporate wage-setting behaviours were changing.
The central bank is likely to revise up its inflation forecasts at its two-day policy meeting ending on Friday, Kanda told reporters, adding that he was not in a position to comment on specific monetary policy.
Kanda, vice finance minister for international affairs, made the remarks amid simmering market speculation that creeping inflation and robust wage growth will prod the Bank of Japan (BOJ) to tweak its yield control policy this week.
On Friday, Kanda told Reuters that “various expectations and speculations are spreading about the possibility of some kind of tweak to monetary policy.”
(Reporting by Tetsushi Kajimoto, writing by Leika Kihara; Editing by Kim Coghill)
By Tetsushi Kajimoto
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