Reuters add more on expectations for big wage rises coming in Japan. Annual wage talks with unions wrap up on March 13.
- Economists see the wage negotiations resulting in an average increase of around 3.9% in annual pay for union workers at major firms.
- That would be the biggest rise in 31 years and heighten expectations the BOJ would end negative interest rates by April.
- The central bank has long contended that robust wage growth was a prerequisite for rolling back more than a decade of a radical monetary experiment that has aimed to lift Japan out of a protracted cycle of deflation and economic stagnation.
- “This year, big firms will probably offer wage hikes of near 4%, which should prompt the BOJ to end negative rates in April,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
We had plenty more on wages and other reasons the BOJ will hike yesterday:
Japan’s largest bank says the BOJ tightening is co,ing this month:
Bank of Japan Governor Ueda
This article was written by Eamonn Sheridan at www.forexlive.com. Source