Société Générale: The Central Bank of Japan is now expected to end negative Intrerest Rate in March

Jin Kenzaki, head of Société Générale’s Japan research department, said that although there is “low confidence” in achieving the 2% price target in a sustainable and stable way, the Central Bank is expected to remove negative intrerest rates and yield curve control in March. At the same time, the Central Bank is likely to say that it will continue to implement zero Intrerest Rate and quantitative easing until it is confident that it will achieve its inflation target. Kenzaki also said that the Central Bank of Japan (in the future) will raise the policy Intrerest Rate to 0%. Japan Central Bank as early as April 2025, the Japanese Central Bank is likely to raise its FY2027 CPI forecast, which excludes fresh food and energy, to 2% and declare “sufficient confidence” to achieve this target, before raising the policy Intrerest Rate from 0% to 0.25%.