March data shows sustained wage growth, a key condition for the Bank of Japan’s potential June rate hike.
Japan’s real wages increased 1.0% year-on-year in March, marking a third consecutive monthly gain. The rise reflects ongoing wage growth, a critical factor for the Bank of Japan’s monetary policy decisions.
Total cash earnings grew 2.7%, missing the 3.2% consensus and slowing from February’s revised 3.4% gain. Base salaries for full-time workers rose over 3% for the third straight month, while overtime pay climbed 1.9%. Consumer inflation stood at 1.6%, below the BOJ’s 2% target.
Nearly two-thirds of economists surveyed expect the BOJ to raise its benchmark rate to 1.0% by late June, with the next policy review scheduled for June 15-16.