Mitsubishi UFJ Financial Group (MUFG) President Hiroki Kamezawa spoke in an interview with Japanese media outlet Asahi Shimbun/
MUFG is Japan’s largest financial group and the world’s second largest bank holding company.
Kamezawa said that the Bank of Japan’s goal of rising prices accompanied by wage increases is “becoming visible as a major trend.”
- “It’s also a matter of timing. The sooner you take the first step from an abnormal situation, the better,”
- Says that the end of negative rates could come as soon as any 2024 given the developments in wages and prices.
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Negative interest rate policy has put pressure on financial institutions’ business operations because it reduces the profit margins they can earn when lending.
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As a side note we’ve been hearing now of the Bank of Japan pivot for about two years. And still waiting.