The Bank of Japan is expected to end its negative interest rate policy on Tuesday due to significant wage increases by major corporations in wage negotiations.

Japan’s main union group reported a 5.28% wage increase in 2024, the largest in 33 years.

The timing of the move will be determined by the success of the annual pay negotiations between workers and employers.

The BOJ may consider terminating its negative interest rate policy next week if a preliminary poll on the conclusion of big enterprises’ pay talks yields positive results.

The decision is expected to be made in March.