Japan’s Slower Wage and Export Growth Backs Case for BOJ Caution

Auto Industry Downturn Could Shake Japan’s Economy;Blow to Exports Could Undermine Wage Hikes

Given that the automotive industry serves as the “backbone” of the Japanese economy, a decline in its performance could undermine the drive for higher wages in the country.

Japan’s Slower Wage and Export Growth Backs Case for BOJ Caution

Gains in Japan’s wages cooled more than expected in March while early trade figures for April showed export growth slowing, adding to the case for the Bank of Japan to proceed cautiously with interest-rate hikes as economic risks at home and abroad continue to mount.