Japanese workers' basic wages saw their biggest increase in 32 years,
which could be a solution for the central bank to increase interest rates this month, while other data confirm a strengthening economic cycle.
The labor ministry said basic wages rose 2.7% in November compared to a year earlier, pushing nominal wages up 3%, slightly higher than economists' expectations of 2.7%. A more robust measure of wage trends, which excludes bonuses and overtime and addresses sampling issues, showed full-time workers' wages grew by 2.8%, marking the 15th month consecutively at or above 2%.
This steady wage growth could reignite speculation about a near-term rate hike from the Bank of Japan, possibly at this month's policy meeting. However, recent gloomy comments by Bank of Japan Governor Kazuo Ueda after the December meeting have shifted market expectations towards the possibility of a policy change later.
The next BoJ meeting is on 23 and 24 January.
USD/JPY is around 158.10 as I update.
