Japan Real Wages Rise for Sixth Straight Month, BOJ Rate Hike Considered

Japan's real wages rose for the sixth consecutive month in June, according to government data released on Wednesday. The inflation-adjusted figure increased by 1.6% year-on-year, matching the revised gain from May and extending a half-year run of gains. Average nominal wages also rose by 3.4% year-on-year to around 531,700 yen per month.

Bank of Japan policymakers have been considering further interest rate hikes, citing rising inflation and economic growth. One BOJ member noted that the real interest rate in Japan is unusually low by global standards, highlighting the need for adjustment due to inflation upside risks.

In a separate development, US Treasury Secretary Bessent attributed Japan's uptick in inflation to the weak yen and energy prices, expressing confidence in BOJ Governor Ueda's commitment to supporting the Japanese economy.