Japan's Wage Growth Shows Signs of Momentum Amid Economic Challenges

Despite a slower than expected increase, Japan's wage growth in December indicates potential for the Bank of Japan to end its negative rate regime.

Japanese wage growth in December was less than expected but showed sufficient underlying momentum for potential policy shifts.
Real wages fell for the 21st consecutive month, but at a slower pace, indicating easing inflation.
Full-time workers saw a 2% wage growth, marking a consistent rise for the fourth consecutive month.
Annual labor talks between Keidanren and trade unions may pave the way for the Bank of Japan to exit its super-loose monetary policy.
Household spending fell for the tenth consecutive month, highlighting ongoing economic challenges.