Analysis-Unfazed by recession, BOJ keeps April policy shift

Analysis-Unfazed by recession, BOJ keeps April policy shift on table

The Bank of Japan is on track to end negative interest rates in coming months despite the economy's fall into recession, say sources familiar with its thinking, though weak domestic demand means they may seek more clues on wages growth before acting. Japan shocked analysts on Thursday when data showed gross domestic product unexpectedly contracting for two straight quarters, the technical definition of a recession, and losing its place as the world's third-largest economy to Germany. While the GDP headlines were startling, the focus for BOJ policymakers is on whether the bumper wage hikes set for 2024 will be repeated next year, a condition the central bank believes is necessary for Japan to emerge from decades of tepid household consumption.

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