Japanese Prime Minister Fumio Kishida in an interview with the Financial Times published Tuesday defended the decisions made in recent months by the Bank of Japan's rate-setting committee which has continuously maintained its ultra-expansionary approach, while other central banks implemented massive rate hikes.
Kishida said that the BoJ's stance is likely to remain dovish until wages rise, despite the lack of policy tightening pushing the yen to record lows against the United States dollar. "By passing on rising prices, we hope businesses will have some latitude to raise wages," Kishida told the newspaper. "In the past, wage hikes were viewed as a cost factor, but going forward, companies need to invest in people for the economy and for businesses themselves to grow," he explained.
The prime minister also said he is not considering shortening BoJ Governor Haruhiko Kuroda's 10-year tenure, which expires next year.