BOJ Governor Ueda's forecast on wages and global economy

Bank of Japan Governor Kazuo Ueda said on his first international call that he expects the global economy to recover after a period of slowdown, which would help the bank maintain its optimistic economic outlook and keep domestic wages rising. Ueda told his G20 counterparts that the central bank intends to keep monetary policy ultra-easy as inflation, currently around 3%, is expected to fall below its 2% target by the second half of this fiscal year. “The BOJ’s forecasts already take into account the possibility of a global economic slowdown. But they do not see a severe global recession as the baseline projection. As our baseline scenario is that global growth recovers after a period of slowdown, Japan’s wages will probably continue to rise,” Ueda told a news conference after attending a meeting of G20 financial leaders on Thursday.