Japanese wages surged by 5.1%, hitting a 33-year high, fueling expectations for another interest rate hike by the central bank

The annual wage negotiations in Japan have ended with the largest increase in over 30 years, providing strong evidence for the wage growth trend that the Bank of Japan has been seeking for a long time. Japan's largest labor union organization, Rengo, announced a 5.1% increase in wages this year, setting a record high since 1991. This further confirms the rising trend of wages in Japan, in line with the central bank's strategy of raising wages to stimulate consumption and stabilize price growth. While the wage growth is encouraging, further observation is needed to see if it can translate into actual monthly wage growth and promote consumption growth in the current inflationary environment. The recovery and growth of the Japanese economy will depend on the interaction of these key factors