Further Hawkish Source Reports

Further hawkish BoJ headlines seen as RTRS sources note that “a growing number of policymakers are warming to the idea of ending negative interest rates this month on expectations that this year's annual wage negotiations will yield strong results.”

• The piece goes on to suggest that “an imminent policy shift is hardly a done deal as there is no consensus within the board on whether to pull the trigger at its upcoming March meeting, or hold off at least until the subsequent meeting.”
• The piece highlights that the outcome of the large firms’ annual wage discussions (March 13) will be a key factor at the March decision.
• The JPY rally and JGB weakness seen on the back of the previously covered JiJi BoJ sources story extends a little further.