It is being reported that a growing number of BOJ policymakers are coming around to the idea of putting an end to negative rates later this month. And they might choose to do so on expectations of stronger results at this year’s spring wage negotiations. One of the sources said that:
“If the spring wage negotiations outcome is strong, the BOJ may not necessarily need to wait until April.”
Adding that significant wage hikes will only heighten the odds of action in March. It is being said that many policymakers are closely watching the outcome of wage talks, which is to be announced next week, to determine how soon to exit negative rates.