Central Banks
BOJ Likely to End Negative Rate in Early 2024, Price Expert Says
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The Bank of Japan will likely end its negative interest rate early next year and then may leave it at zero without further hikes, according to an economist once seen as a potential candidate for the central bank’s new leadership line-up this year.
Persistent inflation in 2024 will be accompanied by wage growth that’s as high or higher than this year, said Tsutomu Watanabe, an economics professor at the University of Tokyo known for his expertise in prices. With consumers’ expectations and tolerance for price rises improving, firms will continue to pass increased labor costs from wage hikes onto prices, he added.