This year’s spring wage negotiations resulted in the largest pay hikes since 1991 and we estimate that participating workers will receive a base pay hike of around 3.5%. While it’s mostly the large corporations that participate in those talks, there are good reasons to expect wage growth among smaller firms to follow the Shunto’s lead. Accordingly, we’re sticking to our non-consensus forecast that the Bank of Japan will end negative interest rates and Yield Curve Control at next week’s meeting.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services