Forex – Japan’s latest labor cash profits data is broadly in line with the BOJ’s projections, supporting ING economists’ view that another rate hike will be expected in the fourth quarter.
Growth in labor cash flows was moderate in July compared with June, but still beat market consensus, according to an investor note by ING economists Min Joo Kang and Lynn Song. Actual earnings unexpectedly rose, defying expectations for a decline, while more reliable, sample-based earnings rose even higher.
The note also stressed that price growth remains strong, which should boost household consumption and maintain inflationary pressure.
