Group 1 - Japan's core wages in September showed stable growth, allowing the Bank of Japan to continue its tightening policy, with nominal wages increasing by 1.9% year-on-year, matching economists' expectations [1][3] - The basic salary also grew at the same rate, while a more stable indicator, which excludes bonuses and overtime, rose by 2.2%, slightly slowing from the previous month [1][3] - Real cash earnings fell by 1.4%, marking the ninth consecutive month of decline, which aligns with analysts' expectations and increases pressure on the government to address inflation's impact on households [1][3] Group 2 - The Bank of Japan views wage trends as a key factor in determining the timing of future interest rate hikes, with the next policy decision scheduled for December 19 [3][4] - The largest labor union, Rengo, is aiming for at least a 5% wage increase in upcoming negotiations, including a 3% rise in basic salary, with confirmation expected by the end of November [4][5] - The current wage negotiations face stronger resistance compared to previous years, influenced by tariffs imposed during the Trump administration, which have affected exporters' ability to raise wages [5] Group 3 - Continuous wage growth is a priority for the government, especially in light of public dissatisfaction over rising living costs and declining real wages, which contributed to the ousting of previous leaders [5] - Japan's core inflation has remained above the Bank of Japan's 2% target for approximately three and a half years, eroding household purchasing power [5] - The government is formulating an economic stimulus plan, expected to be completed this month, which will include measures to alleviate price pressures and support wage growth for small and medium-sized enterprises [5]

Group 1 - The Bank of Japan maintained its interest rate at 0.5%, but Governor Kazuo Ueda indicated an increased likelihood of rate hikes in the near future, similar to the situation before the last rate increase in January [2] - The Bank of Japan raised its growth forecast for the year while warning of ongoing global uncertainties, reflecting an optimistic outlook for Japan's economic recovery [2] - The upcoming wage negotiations in 2024 are seen as a critical factor for potential rate hikes, with the largest labor union aiming for a wage increase of 5% or more [3][4] Group 2 - Pressure is mounting within the Bank of Japan's nine-member board for earlier action on interest rates, with two members reiterating their recommendation to raise rates to 0.75% [3] - External influences, such as U.S. Treasury Secretary Janet Yellen's comments urging the new Japanese government to allow the Bank of Japan to raise rates, are contributing to the discussion on monetary tightening [3] - Analysts suggest that the timing of any rate hike may depend significantly on the yen's performance, as a declining yen could increase import costs and overall inflation [4][6] Group 3 - Despite hawkish comments from Governor Ueda, the yen fell to a near nine-month low against the dollar, indicating market skepticism about immediate rate hikes [5] - Core consumer inflation in Tokyo rose in October, remaining above the Bank of Japan's 2% target, which may influence future monetary policy decisions [5] - The potential for further cost-of-living increases could conflict with the new Prime Minister's commitment to alleviate inflationary pressures on households [6]