BOJ's Adachi: Difficult to end negative rates until positive wage-inflation cycle begins

  • Further remarks by Adachi
  • Positive wage-inflation cycle has not happened yet
  • But if chances of it happening increases, then we can start discussing exit strategy
  • Don't need to necessarily wait for it to turn positive to debate exit from negative rates

He's certainly trying to keep their options open and that is arguably the wise thing as they already touted the spring wage negotiations next year as being the stepping stone for a policy pivot. It's now a question of following through on that.

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