"Japanese Inflation Surprises, Signals Potential End to Negative Rates"

Japan's core consumer inflation slowed in January but beat forecasts, holding at the central bank's 2% target, fueling expectations that the Bank of Japan will end negative interest rates by April. The 2.0% gain in the core consumer prices index was slower than December's 2.3%, but still exceeded market forecasts. Analysts anticipate hefty pay hikes at upcoming wage talks, potentially paving the way for the Bank of Japan to end negative interest rates in March or April. The key going forward is whether wage hikes will outpace inflation, providing households with purchasing power to sustain inflation at the 2% target.