BOJ Considers Ending Negative Rates Amid Wage Hike Expectations

Growing speculation and confidence among policymakers, driven by anticipated significant pay increases, point towards a potential shift in Japan's monetary policy.

A growing number of Bank of Japan policymakers are leaning towards ending negative interest rates in March, influenced by expected hefty pay hikes.
Annual wage negotiations and the outcome of a major labor union survey are key factors in the BOJ's decision-making process.
Speculation of a BOJ rate hike has led to a rise in the yen and Japanese bank shares, with the yen reaching its highest level since early February.
Economists predict wage hikes of around 3.9% on average from major firms, marking the largest increase in 31 years.
BOJ board members express confidence in achieving the bank's 2% inflation target, signaling a potential shift in monetary policy.