STORY CONTINUES BELOW THESE SALTWIRE VIDEOSTOKYO - The Bank of Japan is under pressure to defend a new cap for long-term interest rates set just six weeks ago, as Governor Kazuo Ueda's hawkish remarks heightened market expectations of a near-term end to its negative interest rate policy.
Ueda had described the 1% limit as a protective cap that likely won't be hit any time soon given a fragile economy. But his hawkish remarks have pushed up the 10-year JGB yield to a near decade-high of 0.715% on Tuesday. The outlook of next year's wages is therefore key. Japanese firms traditionally kick off their annual wage negotiations with unions in March. But some clues will be available this year.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: