Japan’s Golden Crossover – Be Careful What You Wish For

(Apr 24) Peter assesses the implications of the recent shunto spring wage negotiations for the labour market and wider economy.
  • The Bank of Japan’s huge treasure trove For many Japanese workers, recent times have seen inflation outstripping wage rises.
  • However, with inflation now waning and wage rises on the up, salaries look set to start rising in real terms.
  • Allied with a labour market at its tightest in decades, the landscape appears to be changing in favour of the employee.
  • This could lead to higher interest rates, a stronger yen and further increases in the level of immigration.