Japan top FX diplomat says small, medium firms also have strong prospects on wage hikes

• It’s not only big firms, also hearing small and medium firms have strong prospects of wage hikes
• Real private consumption in Japan is still below pre-Covid levels
• Bright spots in the economy include strong corporate investment, inbound tourism

The headline comment is the notable one as we enter the period of expecting headlines from the spring wage negotiations. That will be a key focus in the next few weeks for the yen as it will play into the BOJ’s plans for their next rate hike.

This article was written by Justin Low at www.forexlive.com.