Japan's July Wage Growth Hits 30-Year High, Signaling Potential Rate Hikes

Japan's nominal wages rose 4.7% year-on-year in July, the largest increase since 1997, driven by strong corporate earnings and a tight labor market. Real wages adjusted for inflation grew by 2.4%, while base wages increased by 4.1%. These figures reinforce market expectations that the Bank of Japan will continue its path of monetary tightening.