Japan's May Wage Growth Slows to 3.2% from 3.6%, Unlikely to Deter BOJ Rate Hikes

According to Kai-Piu Macro economist Abhijit Surya, Japan's labor cash income growth slowed to 3.2% in May from 3.6% in April, but this is unlikely to prevent further Bank of Japan rate hikes. Despite the recent moderation, Surya noted that basic wage growth indicators remain well above 2025 average levels and remain elevated relative to historical standards. Kai-Piu Macro maintains its forecast that the BOJ will raise rates to 2% by end of 2027.
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