BoJ’s Adachi: Difficult to end negative rates until positive wage-inflation cycle begins
|Bank of Japan (BoJ) board member Seiji Adachi is back on the wires in early European trading on Wednesday, noting that it is “difficult to end negative rates until positive wage-inflation cycle begins.”
Key quotes
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.
Market reaction
USD/JPY has picked up fresh bids on the above comments to rise again toward 147.50. The pair trading 0.18% lower on the day at 147.20, as of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.