Is the Bank of Japan planning to exit negative rates sooner than expected?

<p>A piece in Japanese media argues that the Bank of Japan may exit its negative rate policy sooner than expected, between January and March, due to the outlook now for Federal Reserve rate cuts on 2024.</p><p>Nikkei argues:</p><ul><li>The U.S. Federal Reserve signaled on Wednesday that it might cut rates three times next year.
</li><li>BOJ … most market analysts envision the negative rate policy ending in April … when the results of labor talks at large companies are known</li><li>But waiting until April raises the possibility that the U.S. will lower rates before then. The BOJ might be unwilling to go in the opposite direction if central banks in the U.S. and Europe place rate cuts on the table. In that light, some project the BOJ will decide to exit negative rates between January and March.</li></ul><p>
Here is the <a href="https://asia.nikkei.com/Economy/Bank-of-Japan/Japan-s-negative-rate-exit-scenario-muddled-by-Fed-outlook" target="_blank" rel="nofollow">link </a>to the article for more, may be gated.</p><p>***</p><p>The Bank of Japan next meet on December 18 and 19. Barely anyone expects a policy change at this meeting. </p>

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