Japan's nominal wages increased by 2.5% year-over-year in June, exceeding the previous revised growth of 1.4% but falling short of the 3.1% estimate. This nominal wage rise was driven by gains secured in annual negotiations between workers and employers, prompting speculation that the Bank of Japan (BOJ) may consider raising interest rates. However, Japan's real wages declined by 1.3% year-over-year in June, marking the sixth consecutive month of real wage decreases. Other labor metrics showed mixed results, with cash earnings on the same sample base rising 3.0% year-over-year and scheduled full-time pay increasing by 2.3%. Despite the nominal wage gains, concerns remain about slowing wage growth overall. Japanese Finance Minister Kono emphasized the importance of raising interest rates to strengthen the yen amid these labor market developments.