BOJ Hike Case Gains Momentum as Japan Wage Growth Surges

Japan's real wages rose 2.4% in July from a year earlier, marking the seventh consecutive month of gains and the biggest increase since May 2021.

Nominal wages, or total cash earnings, increased 4.7% to 436,401 yen a month, the fastest pace since January 1997 and well above economists' forecast of 3.8%, according to government data released Tuesday.

The strength was broad-based, with base pay rising 4.1%, the fastest increase since April 1992, and special payments jumping 6.3% after a revised 4.7% gain in June.

BOJ Governor Kazuo Ueda said last week that the central bank would debate raising rates at upcoming meetings, including September, with markets largely pricing in a hike next week.