Bank of Japan Expected to End Negative Interest Rates in April

Former Top Economist Predicts Continual Hikes in Short-Term Borrowing Costs Amid Inflation Exceeding 2% Target

The Bank of Japan (BOJ) is expected to end its negative interest rate policy in April and continue raising short-term borrowing costs next year, according to former top economist Hideo Hayakawa.
Inflation has been exceeding the BOJ's 2% target for over a year, prompting the bank to tweak its yield curve control (YCC) to allow long-term rates to rise more.
The BOJ maintains its 0% target for the 10-year bond yield under YCC, but Hayakawa states the bank 'effectively dismantled' the framework in October.
The BOJ's ultra-loose monetary policy has drawn criticism for causing sharp yen falls that boost import prices and the cost of living for households.
Despite revising up its inflation forecasts, the BOJ stresses the need to keep ultra-easy policy until recent cost-driven inflation turns into price rises underpinned by solid domestic demand and higher wages.