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Will the next Bank of Japan policy meeting say that lifting negative interest rates is appropriate?

Reuters, quoting Jiji Press, reported that some participants at the Bank of Japan’s March policy meeting were likely to say that it would be appropriate to lift negative interest rates, driving the yen higher.

It would not be surprising if some participants judged that the price stability target was now in sight, as evidenced by the recent statement by Council Member Hajime Takada.

Whether the majority of the Policy Board can agree to this, however, is another matter. There will be some persistent attendees who will insist on the continuation of negative interest rates.

It is therefore impossible to say for sure whether there will be a change in monetary policy. Nevertheless, even if negative interest rates were to be lifted, it is unlikely that the yen would appreciate significantly.

The yen has been strengthening due to reports that one of the BoJ’s deliberators will say that “normalisation of policy is appropriate” at the next BoJ policy meeting. In the options market, yen calls were being bought and preparations for a stronger yen had begun.

Looking at the options market, Although it looked as if the yen would run higher at some point, But there is still something strange about it. What is the real background? Gold prices are also rising.

The Nikkei, which has risen quite bubblingly, and If accompanied by an adjustment in US stocks, It could be a surprising move. We want to watch the market carefully here. There is a sense that a big move is awaiting us.