Japan to Hike Minimum Pay by Record, Backing BOJ’s Rate Hikes
Japan has announced a record 6.3% increase in its minimum hourly wage, bringing it to ¥1,121 ($7.56). This move is seen as reinforcing the country's wage-price cycle and providing support for the Bank of Japan (BOJ) to continue its rate hike efforts. The decision comes as the BOJ faces mounting pressure to address the country's persistent inflation, which has exceeded the central bank's 2% target. By raising the minimum wage, the government aims to bolster consumer spending power and contribute to the ongoing economic recovery. The wage increase is the largest on record, reflecting the government's commitment to addressing income inequality and ensuring workers can better cope with the rising cost of living. This step is expected to have a positive impact on the overall economy, as it could lead to increased consumer demand and support the BOJ's efforts to maintain price stability.
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