A political shakeup stemming from a slush-fund scandal may smooth the path for the Bank of Japan to end its negative-rate regime, according to central bank watchers.
Japanese Prime Minister Fumio Kishida is reportedly set to remove from his administration all officials affiliated with a political faction known for its dovish stance on monetary policy, which would make it easier for the central bank to start raising interest rates, according to economists. The faction was formerly led by the late premier Shinzo Abe, who had tried to beat years of deflation with aggressive monetary easing and large fiscal spending.
