MUFJ expect the Bank of Japan to end negative rates at its March meeting

Mitsubishi UFJ Financial Group (MUFJ) is Japan’s largest financial group and the world’s second largest bank holding company.

Analysts there expect a BOJ pivot at the March 18-19 meeting:

• “I think it’s necessary to end the negative interest rate in March, not April,”
• says the BOJ will likely make an additional hike to take the policy rate to 0.25% by October at the latest
• BOJ “needs to secure enough lead time before the next rate hike”
• Says BOJ officials’ comments have hinted at the imminent rate rise, as have political events

Adds that expect the YCC policy to remain in place.

Still to come today:

• Bank of Japan Governor Ueda to speak from 3.10pm Tokyo time

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Earlier:

• Japan’s largest industrial union says wage hikes won are bigger than last year

• Reports some government officials are said to support a near-term Bank of Japan tightening

• BOJ board member Nakagawa says steady progress being made towards inflation target

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