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5/25, 1:22 PM (Source: TeleTrader)
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Kuroda: Supply, demand shocks not as severe in Japan as in US

Bank of Japan (BoJ) Governor Haruhiko Kuroda compared on Wednesday the supply and demand issues facing the United States and Japan, stating that "household pent-up demand has been limited and the recovery of aggregate demand has been slower" than in the US and Europe. Meanwhile, supply constraints "may not be as severe."

In the labor market, "labor supply has room to expand thanks to so-called labor hoarding during the pandemic." Kuroda also said the rate of wage increase has remained moderate due to differences in labor supply in Japan and the US. "The recent surge in commodity prices due to supply factors puts greater downward pressure on the economies of commodity-importing countries through a decline in household real income and corporate profits. In this situation, attention will be focused on how firms pass increasing costs on to prices and how they determine the level of price increases that households are willing to accept," he concluded.

Baha Breaking News (BBN) / DJ