Bank of Japan board members discussed the potential timing of ending the negative rate policy during their meeting last week, with several members indicating they see no rush to make the move.
"It would not be too late even if the bank makes a decision after it sees developments in labor-management wage negotiations next spring,” one of nine board members said at the Dec. 18-19 gathering. There is only a small risk of underlying inflation overshooting its 2% target by a significant degree, the same member said.
Another voiced the opinion that there is "sufficient leeway” to determine whether a virtuous wage-inflation cycle has been achieved after the bank enhanced the flexibility of its yield curve control mechanism in October.