Policy normalisation is in sight

The Bank of Japan sounds increasingly confident that it will be able to achieve its inflation target on a sustained basis. With Mr Ueda at the post-BOJ-meeting press conference again emphasising the importance of the spring wage negotiations, we think the door to an exit from negative rates will be opening sooner rather than later. But we don’t expect a series of hikes – the backdrop will be less conducive to tightening in the second half of the year.