Japan wage gains of 4% to pave way for BoJ hike, says ex-official

Cautious stance: An electronic stock board in Tokyo showing Japan’s Nikkei 225 index. A majority of BoJ watchers predicts the central bank will wait until April before raising rates for the first time since 2007. — AP

TOKYO: The Bank of Japan (BoJ) is likely to be encouraged by stronger annual wage negotiation results that will pave the way for the end of its negative interest rate by this spring, according to a former BoJ executive director in charge of monetary policy.

“There’s a good chance the outcome of spring wage talks will be higher than last year by reaching 4%,” Eiji Maeda, the former director, said in an interview.