Japan’s Slower-Than-Forecast Wage Growth Supports BOJ Caution
- Lackluster pay suggests BOJ has to wait more to normalize
- Households cut spending again compared to previous year
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Wage growth for Japanese workers was slower than expected in August, reinforcing the Bank of Japan’s need to wait for further signs of strength in the labor market before moving toward normalizing policy.
Nominal cash earnings for workers rose 1.1% from the previous year, matching the revised figure from the previous month, the labor ministry said Friday. The reading missed economists’ estimate of a 1.5% gain.