BoJ’s Ueda expects tightening job market

Policy shift: A man walks past the BoJ headquarters complex in central Tokyo. Nearly two-thirds of economists polled by Reuters in August expect the BoJ to raise its key interest rate by at least 25 basis points again later this year. — AFP

TOKYO: Bank of Japan (BoJ) governor Kazuo Ueda says wage hikes are spreading beyond large firms and are likely to keep accelerating due to a tightening job market, signalling his optimism that conditions for another interest rate hike were falling into place.

The remarks are likely to reinforce market expectations that the central bank will resume a rate hike cycle, which was put on pause due to concern over the fallout from US tariffs on the export-reliant economy, later this year.