Japan’s cash earnings growth slowed to 3.2% year on year in May
Japan’s preliminary cash earnings growth slowed to 3.2% year on year in May, down from 3.6% in April.
The slower wage growth is unlikely to stop the Bank of Japan from raising interest rates further.
Core and base wage indicators remain well above their 2025 average and at historically high levels, supporting the case for further rate hikes.
Persistent yen weakness and rising long-end JGB yields could become a source of global market volatility, with potential spillover effects on US, UK, and German bond markets.