Japan: Wages rose at the fastest pace since 2003 – Danske Bank

In Japan, data released this morning showed that wages rose at the fastest pace since 2003 with regular wages jumping 2.1% y/y in March, points out the research team at Danske Bank.

Key Quotes

“Many Japanese companies have struggled to find employees due to a very tight labour market, and the gains in regular wages in March were partly the result of companies hiring more permanent, full-time workers, who generally receive higher pay.”

“Overall, today's wage figures are an encouraging sign for the Bank of Japan, which still struggles to push inflation higher. We still expect the Bank of Japan to keep its monetary policy unchanged in the next 12 months, but we will monitor the development in the labour market and wages closely for any signs that wages may accelerate further.”