 Yen has a notable bounce in Asian session today, fueled by a Nikkei report suggesting that BoJ is finally near to the end its negative interest rate policy. This policy shift, which could see interest rates rise as early as the first half of next year, hinges on the outcomes of spring labor-management negotiations and consumer spending development. Such a move, if realized, would mark a major shift in monetary policy, being the first interest rate hike in 17 years. Nikkei report indeed aligns closely with BoJ's existing communication, where a wage-price spiral is considered a prerequisite for any rate hike. While BoJ has not specified a timeline, the timing of spring wage negotiations make the first half of 2024 a plausible period for this policy change... |
