BOJ’s Nakaso: BOJ will see whether prices are rising accompanied by wage growth in deciding policy action

We have BOJ Deputy Governor Hiroshi Nakaso back on the wires in early Europe, commenting on the wage-price growth this time around.

Key Quotes:

Wage increases spreading to small companies

Still see move among firms to raise prices

Watching if positive growth cycle in place

Some concern over neg-rate impact on banks' profits

Expect prices to reach around 2% in FY 2017

BOJ will look at whether income gains lead to more spending and whether prices are rising accompanied by wage growth in deciding whether to ease policy or not