Japan's negative rate exit scenario muddled by Fed outlook

BOJ prepares to tighten monetary policy as other central banks signal loosening

20231213N BOJ Ueda

Ueda told parliament Dec. 7 that managing the ultraloose monetary policy will become "more challenging" from now into next year. (Photo by Uichiro Kasai)

KENICHI ONOZAWA, Nikkei deputy editor

TOKYO -- With Japanese inflation and wage hikes entering a long-sought virtuous cycle, financial markets eye several time frames for the Bank of Japan's anticipated exit from its negative rate policy.

But in other advanced countries, central banks have begun considering interest rate cuts, which could complicate the BOJ's plan to tighten policy. The U.S. Federal Reserve signaled on Wednesday that it might cut rates three times next year.

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