Bank of Japan Finalizes Plans to End Negative Interest Rate Policy

Mar 16, 2024 | News On Japan

TOKYO - In response to the first round of results from this spring's wage negotiations, which showed the highest level of wage increases in 33 years, the Bank of Japan is making final adjustments to end its negative interest rate policy at next week's monetary policy meeting.

The BoJ has previously stated that it would consider ending the negative interest rate policy once a stable and sustainable achievement of the 2% price stability target becomes foreseeable. The bank has emphasized the importance of wage trends in this spring's negotiations in making its decision.

In light of this, the first round of wage increase results announced by the Japanese Trade Union Confederation (Rengo) on the 15th showed an average wage increase rate of 5.28 percent, significantly surpassing the previous year.

As a result, the BoJ is making final adjustments to revise its large-scale monetary easing measures, including ending the negative interest rate policy, at its monetary policy meeting on the 18th and 19th of next week. If the negative interest rate is lifted, it will be the first rate hike in 17 years.

Source: 日テレNEWS

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