Japan nominal wages jump 4.7% in July, fastest since 1997, fueling BOJ tightening bets

Japan's nominal wages rose 4.7% year-on-year in July, the largest increase since 1997, following an upwardly revised 4% gain in June. This strengthens the case for the Bank of Japan to continue normalizing monetary policy, potentially leading to further rate hikes. The data signals a sustained wage-price cycle, a key condition for the BOJ's exit from ultra-loose policy.