BOJ preparing to end negative interest rate policy at March meeting, Jiji reports
FILE PHOTO: People walk in front of the Bank of Japan building in Tokyo, Japan January 23, 2024. REUTERS/Kim Kyung-Hoon/File Photo
TOKYO (Reuters) – The Bank of Japan has started to make arrangements to end its negative interest rate policy at the March 18-19 meeting, Jiji news agency reported on Thursday.
A number of major firms this week announced wage hikes above those of 2023, heightening expectations that the rosy pay trends will give the central bank leeway to make the key policy shift.
Sources have told Reuters that the central bank will debate the end of its negative rate policy next week if Friday’s preliminary survey on big firms’ wage talks outcome yield strong results.
The BOJ will make a final decision on what would be the first rate hike in Japan in 17 years after reviewing Friday’s preliminary wage survey result, Jiji said.
