BOJ Set to End Negative Interest Rates in April Amid Economic Shifts

Over 80% of economists predict the Bank of Japan will move away from its eight-year negative interest rate policy, signaling a major policy shift as the economy faces inflation and wage growth.

• Bank of Japan Governor Kazuo Ueda remains optimistic about Japan's inflation and wage outlook, expecting a positive economic cycle.
• Japan's inflation is expected to fall below the BOJ's 2% target for the first time in nearly two years, complicating plans to end negative interest rates.
• More than 80% of economists anticipate the BOJ will end its negative interest rate policy in April, with a significant number also expecting the end of yield curve control.
• The yen has weakened to around 150 against the dollar, raising the possibility of intervention by Japanese authorities.
• Economists predict wage growth and base salary increases at big Japanese firms will exceed this year's 3.58% in the next fiscal year.

3 Articles

CNBC CNA CNA