Japan’s Blowout Wage Result May Spur BOJ March Rate Increase
- Largest union group says annual deals hit 5.28% in first tally
- Biggest gains in more than 30 years may prompt BOJ move
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Japan’s largest union group announced stronger-than-expected annual wage deals Friday, a result that will fuel already intense speculation that the central bank will next week raise interest rates for the first time since 2007.
Rengo, a federation of unions, said its members have so far secured deals averaging 5.28%, a figure that far outpaces the initial 3.8% tally from a year ago — itself the biggest in 30 years. Many of Rengo’s affiliated groups had already announced agreements to hike wages by 5% or more.