Difficult to end negative rates until positive wage-inflation cycle begins

Bank of Japan (BoJ) board member Seiji Adachi is back on the wires in early European trading on Wednesday, noting that it is “difficult to end negative rates until positive wage-inflation cycle begins.”

Key quotes

Positive wage-inflation cycle has not happened yet

But if chances of it happening increases, then we can start discussing exit strategy.

Don’t need to necessarily wait for it to turn positive to debate exit from negative rates.

Market reaction

USD/JPY has picked up fresh bids on the above comments to rise again toward 147.50. The pair trading 0.18% lower on the day at 147.20, as of writing.