BOJ plans to discuss ending negative interest rates at next week’s meeting

Japanese media (Nikkei) with the report. In brief:

• The Bank of Japan will discuss whether to end its negative interest rate policy at a meeting that starts Monday, Nikkei has learned, as pay hikes by major companies bring the central bank’s 2% price stability target within reach.
• With more BOJ policymakers embracing the idea, the decision is seen coming down to the results of Japan’s annual wage negotiations, to be published by top labor confederation Rengo on Friday.

Earlier this week Bank of Japan Gov. Kazuo Ueda has said the outcome of annual negotiations between labor unions and employers will factor into his decision, they’ll be a “key consideration”.

• “I hope to make the appropriate decision based on a comprehensive look at the tally of negotiation results and other factors,”

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The Nikkei is gated but here is the link if you can access it.

• BOJ to discuss negative rate exit next week as Japan pay raises grow

The Bank of Japan meeting is on March 18 and 19.

This article was written by Eamonn Sheridan at www.forexlive.com.