Japan's 'shunto' results exceeded last year, but are unlikely to shake expectations for the Central Bank's decision next week.

On March 14, Japan’s largest labor federation announced on Friday that its union had won an average wage increase of 5.46% since April, which was higher than last year, and the news was released ahead of next week’s Central Bank monetary policy meeting in Japan. The relatively strong results reflect Japan’s gradual recovery from its “lost decades.” Japan’s Central Bank will hold a two-day monetary policy meeting starting next Tuesday. In a survey of economists conducted by Nikkei affiliate QUICK from March 6 to 10, all respondents unanimously expected Japan’s Central Bank to maintain its current policy stance at the meeting. Sumitomo Mitsui Bank’s senior Intrerest Rate strategist at Nikko Securities said the likelihood of a rate hike by Japan’s Central Bank is “largely slim” based on the results of the “spring fight”, adding that the next rate hike is most likely to take place in the summer, given that the last rate hike was in January.