Wage growth key to Japans inflation targets - BTMU

FXStreet (Guatemala) - Derek Halpenny, analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained, from the perspective of the yen, what is crucial going forward is that higher wages lifts confidence and inflation expectations starts to alter the composition of cross-border flows.

Key Quotes:

"Of late the data shows that GPIF diversification into foreign markets has been a key part of outflows but that Japanese retail outflows have been muted. If wage growth picks up then investments abroad by households may follow."

"The summer bonuses, in June, may well be important in determining whether increased capital outflows materialise."