(Photo = Yonhap news)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] Japanese conglomerates, including the world's largest automaker Toyota, have agreed to the largest wage increase in 25 years, raising expectations for ending negative interest rates next week.

According to Reuters on the 14th, a number of Japanese conglomerates, including Toyota and Panasonic, have agreed to wrap up their annual wage negotiations and fully meet union demands.

Toyota agreed to the union's demand to raise its salary by up to 28,440 yen (about 250,000 won) and pay a record bonus, Reuters said.

The Nippon Steel also announced that it has fully agreed to the union's demand for higher wages.

This year's wage increase rate will be the largest in 31 years, from less than 4% to more than 5%, according to Reuters.

Depending on the results of wage negotiations by conglomerates, the Bank of Japan is expected to further boost its forecast next week that it will stop negative interest rates that have been in effect since 2016.

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