TOKYO (Reuters) -The Bank of Japan (BOJ) will aim to create conditions for raising prices and lifting wages through increases in corporate profits and household incomes instead of cost-push inflation, its deputy governor Shinichi Uchida said on Tuesday.
“The BOJ will continue to support economic activity and strive to create an environment wherein it’s easy to raise wages,” he said during a debate at the parliament’s upper house committee on financial affairs.
At the Oct. 30-31 meeting, the BOJ loosened its grip on long-term interest rates by tweaking its yield curve control (YCC) policy tool to re-define 1% on the 10-year yield as a loose “upper bound” rather than a rigid cap.
Even with upward pressure on long-term interest rates, the BOJ does not believe the 10-year yield will significantly exceed 1%, said Kazuhiro Masaki, director-general of the central bank’s monetary affairs department.
(Reporting by Satoshi Sugiyama; Editing by Tom Hogue & Shri Navaratnam)