Bank of Japan "is completely ready” to end negative rates in April 2024 – ex BOJ official

<p>Makoto Sakurai says the Bank of Japan "is completely ready” to end negative rates in April 2024. Sakurai is a former Bank of Japan policy board member.</p><ul><li>“The BOJ is completely ready,” </li><li>“They are just waiting for one last push from one or two economic data.”
</li><li>April is the most likely timing for a rate hike after authorities peruse initial results of spring wage talks due in March</li><li>“The BOJ will only go slowly. It’s completely different from” the Federal Reserve and European Central Bank</li><li>“What Japan’s economy needs is the continuation of an appropriate level of monetary easing.”
</li><li>Sakurai expects the BOJ’s terminal rate will likely be around 0.5% for its short-term rate, and the bank will probably take three or four years to get there, meaning just one or two hikes in the first 12 months.</li></ul><p>
He was speaking in an interview on Wednesday. Bloomberg (<a href="https://www.bloomberg.com/news/articles/2024-01-10/boj-fully-prepared-for-lift-off-with-april-likely-ex-official" target="_blank" rel="nofollow">gated</a>) with the info. </p><p>The question is, of course, will the wages data support a shift in policy like this from the Bank? Yesterday we got very disappointing wages numbers from Japan:</p><ul><li><a href="https://www.forexlive.com/centralbank/japan-november-wages-data-shows-another-deep-fall-20240109/" target="_blank" rel="follow" data-article-link="true">Japan November wages data shows another deep fall</a></li></ul><p>But, maybe the Spring wage talks will bring a result?</p><ul><li><a href="https://www.forexlive.com/news/usdjpy-rises-100-pips-after-wage-data-disappoints-eyes-on-the-boj-20240110/" target="_blank" rel="follow" data-article-link="true">USD/JPY rises 100 pips after wage data disappoints. Eyes on the BOJ</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.