Japan just printed its fastest wage growth since 1997. For global markets, that is a lit fuse.
Nominal pay rose 4.7% in July, the biggest jump in nearly three decades and a mile above the 3.8% expected. It hands the Bank of Japan the cover to hike again next week, a move markets… pic.twitter.com/6lUW39FmMv
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) September 8, 2026
The weird part is Japan’s consumers are still cutting back. Household spending fell 3.6% in July for the eighth straight month. So the BOJ may hike even while domestic demand remains weak, with the yen becoming the main channel through which tighter policy hits global markets.
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