Japanese Finance Minister Shunichi Suzuki said there will likely come a time when interest rates will begin to rise and affect the economy through various channels, according to the Nikkei newspaper on Saturday.
Japan shocked analysts on Thursday when data showed gross domestic product unexpectedly contracting for two straight quarters, the technical definition of a recession, and losing its place as the world s third-largest economy to Germany.
That’s the view of some analysts in Tokyo as traders prepare for the Bank of Japan to increase rates for the first time since 2007. Overnight-indexed swaps point to a 67% chance that the BOJ will end negative rates by April.
Bank of Japan (BoJ) Governor Kazuo Ueda said on Friday that he is “watching the outcome of spring wage talks and various other factors.” He added that he “wants to confirm whether the virtuous cycle of wages and prices strengthening or not.” Related reads Japanese Yen struggles near daily low against USD, intervention fears help limit losses BoJ Ueda: Will consider policy move when inflation target conditions met Japanese Yen price this week The table below shows the percentage change of Japanese Yen (JPY)