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2025-12-17 13:07:39
[Japanese Auto Workers Union Worried: Central Bank Rate Hike Could Cause Yen Surge, Squeezing Companies' Wage Increase Space] 1. The president of the Japanese auto workers' union expressed concern on Tuesday about a possible interest rate hike by the Bank of Japan this Friday, which could put pressure on companies' ability to raise wages in the next fiscal year. 2. He explained that if the Bank of Japan decides to raise interest rates, triggering a significant strengthening of the yen, it will dampen the profit expectations of export companies, thus making it more difficult for them to raise wages. However, he added that if the rate hike is moderate, companies should be able to adapt. 3. The market generally expects the Bank of Japan to raise the policy rate by 25 basis points to 0.75% at its meeting on Friday, reaching the highest level in nearly 30 years. With the Monetary Policy Committee meeting approaching, the prospects for wage negotiations in the auto industry are becoming a focus of market attention.
