BOJ leans toward March negative rate exit - sources

STORY: An end to negative rates in Japan could come this month, four sources have told Reuters.

They said a growing number of policymakers at the Bank of Japan have warmed to the idea.

Especially with expectations of big pay hikes in this year's annual wage negotiations.

The sources added that once negatives rates end, the central bank is likely to overhaul its massive stimulus program.

But they further said a shift in policy is still a close call this month among the bank's nine-member board.

They said there is no consensus on whether to go ahead with the change at its meeting on March 18 to 19, or to wait until late April.

Many BOJ policymakers are closely watching the outcome of yearly wage negotiations between unions and big firms on March 13.

The sources said any significant pay hikes will likely raise the chance of action in March.

The BOJ hopes that wage increases will lead consumers to spend more, which could boost demand and prices after years of economic stagnation and deflation.

But the BOJ may hold off until April if many board members prefer to wait for key data reports released next month.

The yen has risen against the dollar on growing speculation the BOJ could end negative rates soon.

Investors have also bet the U.S. Federal Reserve will cut rates in the near future.