BOJ Bets Swing Toward March Rate Hike

  • Higher pay the last piece in puzzle needed for policy shift
  • Some BOJ officials favor early rate move, people familiar say
WATCH: Wage growth in Japan accelerated, and this bolsters the case for the BOJ to end its negative interest rate in the near term. Paul Jackson reports.Source: Bloomberg
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Speculation surged that the Bank of Japan will move this month to raise interest rates for the first time since 2007, after a flurry of reports and wage figures helped drive up the yen, bond yields and overnight swaps.

Bets on the March 18-19 meeting are gaining traction as reports emerge that some BOJ officials favor an early move while some government officialsBloomberg Terminal also support a rate hike. Economists and investors are largely in agreement that the central bank will scrap the world’s last remaining negative rate either this month or in April.