Clients of Japan’s biggest bank are bracing for the central bank to finally abandon its ultraeasy monetary policy, which could happen by the end of September, according to the head of Mitsubishi UFJ Financial Group’s global markets business.
"I think the Bank of Japan could launch an exit strategy as soon as the first half of the next fiscal year under the new leadership,” Hiroyuki Seki said in an interview. Japan’s financial year starts in April, and BOJ Gov. Haruhiko Kuroda steps down on April 8.
Such a move would depend on stable price increases and wage growth, as well as the health of the U.S. and European economies, Seki said. The Tokyo-based lender is already seeing a pickup in activity from companies and institutions anticipating higher interest rates on yen-denominated assets, he added.