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Goldman Sachs Now See BoJ Scrapping NIRP In March

BOJ

"Given the much stronger than expected shunto wage outcome and multiple news stories over the past 72 hours reporting that the BOJ will terminate negative interest rate policy (NIRP) in March, we are changing our forecast and now expect an exit from NIRP at this week’s March MPM. Before the first Shunto negotiated wage data release on Friday 15th, the majority of the media reported that the BOJ will discuss the termination of NIRP and only a few articles implied a policy change. But after the data release in the evening, more articles (including Nikkei, March 16) reported that the BOJ will terminate NIRP. The BOJ has not sent any signal denying the news so far. Together, these developments imply that the BOJ probably no longer needs more data for the policy change, nor to wait to justify the policy change with the quarterly Economic Outlook report in April."

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