BoJ's Kuroda: Hard for inflation to hit 2% unless wages rise in tandem with prices

Reuters reports that the Bank of Japan Governor Haruhiko Kuroda on Friday reiterated the central bank's resolve to keep monetary policy ultra-loose to support the economy's recovery from the COVID-19 pandemic.

"In Japan, nominal wages haven't risen much. It's hard to see inflation sustainably reach our 2% target unless wages rise in tandem with prices," Kuroda told parliament.

There has been no reaction to the comments. 

Instead, the markets are fixated on the US Nonfarm Payrolls event today which is not expected to be beneficial to the greenback.

• US dollar is at the mercy of US Nonfarm Payrolls, 94.60's and 95.80's eyed

However, analysts at TD Securities argued that ''several Fed officials have already made clear that they will discount weak data as temporary. Also, we see upside risk on average hourly earnings, with an already strong trend likely to be added to by temporary Omicron effects relating to the composition of payrolls and the length of the workweek. Our 0.6% MoM estimate for hourly earnings implies 5.3% YoY, up from 4.7% YoY in December.''