Japan CEOs See Higher Prices, Wages With BOJ Move ‘Just a Matter of Time’
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Japan's chief executives are preparing for the Bank of Japan (BOJ) to end its negative interest rate policy, which is expected to happen within weeks or even days. CEOs believe that higher prices and wages are imminent once the BOJ returns to a normal situation. Inflation in Japan is holding near the BOJ's target of 2%, and unions have secured significant wage hikes, indicating that the economy is ready for the end of ultra-loose monetary policy. Some executives have already experienced or anticipate higher borrowing costs, and a majority of central bank watchers predict that negative rates will end in April. The yen has been gaining against the dollar in anticipation of a rate hike, which could reduce profits for exporters but ease the burden for retailers that procure materials overseas. Overall, CEOs are optimistic that the end of negative rates will lead to increased consumption and a normalization of Japanese inflation and the economy.

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https://www.bloomberg.com/news/articles/2024-03-17/japan-ceos-see-higher-prices-wages-with-boj-move-just-a-matter-of-time