Japan central bank gov. says companies must raise wages, investment, says hoarding cash costly

Japan's central bank governor has urged companies to raise wages and investment to aid the country's efforts to overcome deflation.

Haruhiko Kuroda told a group of businessmen in central Japan on Tuesday that the central bank was committed to achieving a target of 2 percent inflation and that he expects companies to make their decisions based on that plan.

Kuroda announced last month an expansion of the central bank's asset purchases, to inject trillions more yen into the economy, which has slipped into recession.

Profits of many Japanese corporations have soared thanks to the central bank's monetary expansion, which has weakened the yen.

Kuroda said he had "great interest" in seeing wages and prices increase and wants to see corporations use those profits in a more productive way.