Bank of Japan officials are increasingly expressing disappointment at subdued annual wage talks, according to people familiar with the discussions, making next week's monetary-policy decision a closer call.
Gov. Haruhiko Kuroda has said publicly that pay raises have been muted given the tighter jobs market and surging corporate profits. His concern has been echoed by officials as the central bank's board prepares for a Jan. 28-29 meeting, according to the people, who asked not to be identified as the talks were private.
The BOJ is considering cutting its inflation forecasts and postponing the timing for reaching a price target as a renewed decline in oil prices raises the chances of inflation failing to pick up, according to the people. A postponement would be the third in less than a year.
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