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TOKYO -Japanese companies have agreed to raise pay by 5.20% on average this year, the biggest rise in 33 years, the country s largest union group Rengo said on Thursday, wrapping up its fourth tally.
Japan is well-known for following dovish monetary policies to stimulate economic activity. As the world's third-largest economy has held its key interest rates at negative 0.1% since February 2016. While the country successfully navigated through post-pandemic inflation woes without raising benchmark interest rates, the stickier-than-expected inflation trajectory drove the Bank of Japan (BOJ) to adopt a more hawkish approach last week, marking the first rate hike in 17 years. Don't Miss: One sto
In a rare display of unity in lifting Japan out of its prolonged deflation, leaders from labor and management jointly called for pay hikes exceeding inflation, during the annual “shunto” wage negotiations.