Japan’s Nominal Pay Rises Faster in June, Backing Case for BOJ Rate Hike

Japanese workers saw their nominal wages rise at the fastest pace in four months, reflecting gains won in annual negotiations with employers and fueling market speculation that the Bank of Japan may hike its benchmark rate in coming months.

Nominal wages increased 2.5% in June from a year earlier, accelerating from a revised 1.4% gain the previous month, the labor ministry reported Wednesday. While the figure fell short of economists’ forecast of a 3.1% rise, it still marked the steepest increase since February.