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Japan Weekly: Trade tensions unlikely to reduce wage growth much

While the Bank of Japan became more upbeat about the outlook for inflation this week, it still thinks that trade tensions will result in a slower wage growth via lower corporate profits. However, with industrial production holding up so far and a weaker yen lifting export earnings, we’re not convinced that firms will pull in their horns. Accordingly, we still expect the BoJ to hike rates before the end of the year.

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