Japanese rising real wages data keeps the BOJ on track for a Q4 interest rate hike

The data from earlier today is here:

• Japan July wages data – Inflation adjusted wages +0.4% y/y

Real wages in Japan turned positive for the first time in 27 months in June. July has followed up with another rise. Summertime bonus payments helped the July data.

Bank of Japan Governor Ueda has repeatedly emphasised that broad increases in pay must accompany rising prices for
inflation to sustainably and stably meet the Bank’s 2% target.

A snippet from ING’s response says:

• The latest data is broadly in line with the Bank of Japan’s projections, so we continue to believe that the BoJ will deliver another rate hike in 4Q24.

usyehn update – yen rose after the data but has retraced:

This article was written by Eamonn Sheridan at www.forexlive.com.