Economics
Toyota Agrees to Wage Hikes, Bolsters BOJ Policy Shift View
- Honda, Mazda already agreed to union demands to raise wages
- Central bank policy board to debate negative rates next week
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Toyota Motor Corp. met its labor union’s demands for increases in salary and bonuses in full for the fourth straight year, in another sign that a sustainable wage-price cycle may be taking hold in Japan’s economy as the central bank considers the timing of a long-awaited interest rate hike.
The yen rose and government bond futures fell — signs traders were adding to bets on an imminent move by the Bank of Japan — after early reports that the world’s largest carmaker reached agreement with its unions on Wednesday. Although the union doesn’t disclose exact figures for the wage hike and bonus, Toyota Chief Human Resources Officer Takanori Azuma said they were at the highest ever level.