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Pimco Sees Multiple BOJ Rate Hikes Starting as Soon as March
The Bank of Japan may scrap its negative interest-rate policy as soon as March and make multiple hikes this year, adding to the bearish outlook for the nation’s government bonds, according to Pacific Investment Management Co. The last adherent of sub-zero borrowing costs is expected to raise its benchmark to 0% in March or April, before hiking to 0.25% by year-end, Pimco said in a market-outlook report. Quickening wage growth is likely to create persistent inflation in the economy, ensuring “supportive” conditions for exiting negative rates, according to the $1.9 trillion money manager. “It’s likely going ... (full story)