Japanese national flag fluttering at Japan Bank in Tokyo on May 30, 2024.
Kazuhiro Nogi | AFP | Getty Images
The Central Bank of Japan retained its key policy rate of 0.5% on Wednesday to conclude a two -day meeting.
The move, which was in line with market expectations, comes because the Japan bank evaluates the potential impact of protectionist trade policy of US President Donald Trump on her economy related to exports.
Fight decision only comes in front of US federal reserves a meeting of politicswhere the central bank is expected to retain its reference interest rate.
Fighting increased short -term rates to 0.5% with 0.25% in January, The highest level since 2008After ending the massive stimuli program last year. The central bank signaled its willingness to further increase rates if economic growth and inflation move in accordance with its projections.
The setting board could discuss the second increase in the rate as soon as it may, because of concern about inflation pressure from wages and stubborn food costs, some analysts said.
The largest Japanese union announced on Friday that he was able to secure the average 5.46% wage increase From April – his biggest increase in more than three decades.
The Japanese union confederation, or Rengo, which has about 7 million members, said that the first table of the results covering 760 trade unions was 0.18 percentage points higher than last year’s increase of 5.28%.
SMEs recorded an average rate of 5.09%, which is 0.67 percentage points compared to last year and the first time in 1992 that wages increase for such companies exceeded 5%.
UA Zensen, a roof group representing retail, a restaurant and other industrial unions, allegedly said that 139 of the union received was received an average increase of 5.37% of monthly wages For full -time workers, just under 2024.
Japan saw a Two -year -old high inflation rate of 4% in January, as well as Household consumption massively beating expectations in Decemberwith 2.7% of growth year to year.
December was the fastest that has been domestic consumption of August 2022, and the first annual increase in July 2024. The household consumption then slowed down in January for an increase of 0.8%.
The battle reiterated that his goal was to see the “virtue cycle” of growing prices in Japan.
However, the GDP-released figures seem to have complicated the path to battle last week, showing the revised figures in the fourth quarter The Japanese economy grew 2.2% on an annual basis, a slower pace than Initially reported. The revised data were also lower than the middle forecast of economists.
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