After more than four years of ultraloose monetary policy by the Bank of Japan, the economic slump is waning and many BOJ watchers, keying in on recent repeated hints, are predicting the stance may end in the near future.
The central bank adopted the quantitative easing stance in March 2001 to counteract persistent deflation. Under the policy, excess funds are flooded into the money market while interest rates are effectively kept at zero.
BOJ Gov. Toshihiko Fukui, speaking to reporters last week, said the end of quantitative easing could come "before fiscal 2006 starts or a few months after." BOJ Policy Board members also began hinting last month at a swift policy change.