Japan’s back-to-back wage bonanza would open door for BoJ exit

Higher salary: People stand in front of an electronic stock board showing Nikkei 225 index at a securities firm in Tokyo. With inflation having held above the BoJ's 2% target for more than a year, companies have faced unprecedented pressure to compensate employees with pay hikes to retain and lure talent. — AP

JAPAN’S big employers are set to follow this year’s bumper pay hikes with another round in 2024, which are expected to help lift household spending and give the central bank the conditions it needs to finally roll back massive monetary stimulus.

Early indications from businesses, unions and economists suggest the labour and cost pressures that set the stage for this year’s pay hikes – the largest in more than three decades – will persist heading into next year’s key spring wage talks.