Japan Macro Weekly

The BOJ is expected to pursue policy normalization with a rate hike in June, targeting a 1.5% policy rate. While geopolitical tensions in the Middle East present risks, wage and price trends remain robust enough to justify the shift.

Key Takeaways

• 1.The BOJ is leaning towards a rate hike at the 15-16 June meeting, with Governor Ueda characterizing his recent stance as hawkish despite uncertainties.
• 2.Real wages in Japan rose for a fourth consecutive month in April, supported by firm growth in nominal wages and subdued inflation.

Table of Contents

• Global economy and finance: Weekly watch (8 June)
• Review of key indicators and events
• Economic indicators
• BOJ-related events
• Economic outlook (as of 8 June)