Japan’s northern Aomori prefecture offers early sign of broadening wage hikes

Japanese policymakers searching for clues on whether wage hikes will become widespread may find relief in a central bank survey in the northern prefecture of Aomori, which showed a majority of firms planning wage hikes similar or higher than last year. While some major companies based in big cities like Tokyo have signalled bold wage hikes, the Bank of Japan (BOJ) has said it needs to scrutinise whether pay rises will spread to smaller firms in regional areas, before raising interest rates. Offering a rare glimpse into the wage outlook in the outskirts of Japan, a survey by the BOJ's Aomori branch released on Wednesday showed early signs of broadening wage increases.