Marco

The yen maintained a negative interest rate for up to 8 years until March 2024, which led to the capital market borrowing yen to invest in other high-interest markets. In March of this year, the Bank of Japan began to raise interest rates, ending the 8-year era of negative interest rates. This is also the first interest rate hike since February 2007.
From December 18 to 19, the Bank of Japan will hold its last monetary policy meeting of the year. Based on the core concerns of Bank of Japan Governor Kazuo Ueda and his policy framework, it is expected that the Bank of Japan will likely raise interest rates again.
First, regarding the forward-looking wage setting. In October, the Japanese Trade Union Confederation (Rengo) announced its basic policy for next spring's labor negotiations, calling for all companies to raise wages by more than 5%; additionally, many large Japanese companies have also indicated that they will continue to implement a robust wage increase strategy.