The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Workers stroll in a government office quarter in Tokyo.
Workers stroll in a government office quarter in Tokyo.
(TOSHIYUKI AIZAWA/REUTERS)

BREAKINGVIEWS

Fattening up workers’ wallets key to Japan’s inflation target

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks. Click here to read more international insights.

Japanese workers are hoping for a 1980s revival. If the Bank of Japan’s 2-per-cent inflation goal appears daunting, meeting it in two years – as promised by new chief Haruhiko Kuroda – is even more of a challenge. For the central bank to succeed, wages will have to grow faster than they have in the past two decades.