Japan’s era of negative interest rates will end in coming months, and the implications for world markets will be enormous, with U.S. Treasurys set to suffer the most, according to the latest Bloomberg Markets Live Pulse survey.
The Bank of Japan is likely to unwind its unusual policy of subzero rates during the first half of 2024, the majority of 315 respondents said. The move would bring an end to a bold experiment it embarked on in 2016 — one that’s recently placed Japan at odds with other major central banks that have been tightening aggressively to combat inflation.