The head of Japan＊s auto workers union said he＊s concerned that if the central bank raises its benchmark interest rate Friday 〞 as is widely expected 〞 the move could weigh on companies＊ ability to raise wages in the coming fiscal year.
※If the yen sharply strengthened after Friday＊s decision, it could affect corporate sentiment,§ Akihiro Kaneko, president of the Confederation of Japan Automobile Workers＊ Unions, said in an interview on Tuesday. ※Sharp moves would make it harder for exporters to offer wage increases as their expected profits would disappear,§ he added, while noting that companies should be able to adapt if the move is moderate.
Kaneko spoke as markets closely watch wage developments in the auto sector as the Bank of Japan＊s monetary board prepares to gather. Authorities are expected to raise the policy rate to 0.75%, the highest in 30 years, when their meeting concludes on Friday.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.