Japan's wage data is solid enough for the Central Bank to continue on track

Sina Financial News data showed that Japan’s wage growth in December last year was stronger than expected, but still showed enough potential momentum to put the Central Bank on track to end the negative Intrerest Rate regime in the coming months. Japan’s labor cash income recorded an annual rate of 1% in December, partly due to a 0.5% increase in winter bonuses. Compared to the previous month, the increase has accelerated. In a more positive sign, the data for the fourth consecutive month of growth of more than 2 per cent in the data that avoids sampling problems and excludes bonuses and overtime costs. Looking ahead, we expect wage growth to slow in January as the boosting effect of winter bonuses wears off, economist Taro Kimura said.