Moody's: Weak Japanese wage data puts the Bank of Japan in a difficult position.

On July 7, Jin10 data reported that Japan's weak wage data released on Monday indicates that the Central Bank's difficulty in raising interest rates is increasing. Compared to a drop of 2.0% in April, wages adjusted for inflation fell by 2.9% year-on-year in May. Moody's economist Stefan Angliker stated that trade negotiations between the U.S. and Japan appear to be at an impasse, with the U.S. threatening to impose higher tariffs on Japanese goods, making the economic outlook "very challenging." Angliker added, "As wage growth stumbles and inflation becomes tricky, the Central Bank's job will become more difficult." He further noted, "We still believe that the Central Bank will continue to raise interest rates, but if wages continue to decline, the rationale for tightening will become more challenging."