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

New data on wage hikes to play key role in policy decision

Bank of Japan Gov. Kazuo Ueda has said the outcome of annual negotiations between labor unions and employers will factor into his decision. (Source photos by Nikkei)

KENICHI ONOZAWA, Nikkei staff writer

March 14, 2024 02:00 JST

TOKYO -- 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.