Jiji is all over the Bank of Japan this week. The yen strengthened to start the week after a report that the BOJ is considering scrapping yield curve control and replace it with a QE program while hiking rates to 0% as soon as March 19.
The market is still skeptical with March 19 pricing at about 50/50.
More recently, Jiji was out with a report saying ‘many’ Japanese firms are offering ‘big’ pay highs.
“These companies include not only automakers and other manufacturers but also restaurant and other service operators and retailers,” the report says.
BOJ officials have repeatedly pointed to spring wage negotiations as a key metric before exiting negative rates.
I would say there’s a good reason for the BOJ to move but the market has been burned by sources reports on the BOJ for months.
This article was written by Adam Button at www.forexlive.com. Source