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Annual "Shunto" Wage Negotiations Kick Off

JAPAN

Kyodo News reports that Japan's annual "shunto" wage negotiations kicked off today, with the market looking to learn if pressure for pay increases will spread to smaller firms, while speculation is rife that the BoJ could be pivoting towards ending its negative rate policy.

  • Kyodo notes that the negotiations at large companies will likely conclude in mid-March, but may take a bit longer for smaller firms. Japan Business Federation (Keidanren) leader Masakazu Tokura said that the organisation should "pursue wage hikes that beat soaring prices with stronger resolve than last year", when major companies raised wages by almost 4% on average.

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