Officials in the Bank of Japan have grown increasingly confident that the economy is robust enough to attempt an imminent exit from the world’s remaining negative interest rates.
The central bank has become more bullish on its inflation outlook due to rising momentum for wage increases and growth in service sector prices, strengthening views within the BoJ that the ending of its ultra-loose monetary policy, in place since 2016, could come as early as March.
In a widely expected decision, the BoJ kept overnight interest rates at minus 0.1 per cent at its most recent policy meeting in January. Kazuo Ueda, the bank’s governor, offered few hints on when it might raise interest rates for the first time since 2007.