Given pressure from the government and the ruling party, the Bank of Japan will be forced to maintain interest rates near zero, even after it ends its quantitative easing policy. |
Japan's labor market is showing a remarkable improvement recently and companies are eager to make new investment. The Bank of Japan probably wants to nip the source of inflation in the bud as soon as possible. |
The Bank of Japan will shift policy as early as April, or by mid-year at the latest. |