Monetary policy, as a macroeconomic policy, also has an impact on such formation through its influence on such factors as labor market conditions. Specifically, the Bank's monetary easing will first support positive spending activity of firms and households and boost aggregate demand through accommodative financial conditions such as lower funding costs.
This will lead to an increase in corporate profits and, through higher corporate demand for labor, bring about a tightening of labor market conditions, which in turn will contribute to wage increases. The  8  Bank will continue to firmly support economic activity through monetary easing, aiming to achieve the price stability target, accompanied by wage increases, in a sustainable and stable manner.