JAPAN SHIFTING TO WAGE - DRIVEN INFLATION PHASE , FINANCE MINISTER SAYS

What happened: Japan's Finance Minister Satsuki Katayama said the economy is on the cusp of shifting to sustained inflation driven by rising wages, after a phase of price rises from higher import costs. Key numbers: BOJ raised interest rates to a 31-year high of 1.25% in September. The government plans to cut an 8% consumption tax rate on food items by two years from April next year. Why it matters: Katayama said she sees no gap between the government and the BOJ, while analysts warn the tax cut and big spending plans could boost demand and contradict the BOJ's efforts to rein in inflation.

Japan's Finance Minister Satsuki Katayama said the economy is on the cusp of shifting to sustained inflation driven by rising wages, after a phase of price rises from higher import costs.

Katayama said she sees no gap between the government and the BOJ, while analysts warn the tax cut and big spending plans could boost demand and contradict the BOJ's efforts to rein in inflation.