TOKYO- The Bank of Japan will debate whether to raise interest rates next week, Governor Kazuo Ueda said on Wednesday, reiterating the bank’s resolve to push up borrowing costs if the economy continues to improve.
The remarks, which echo those made by BOJ Deputy Governor Ryozo Himino on Tuesday, pushed up the yen as markets continued to price in the chance of a rate hike at the bank’s next policy meeting on Jan. 23-24.
Speaking at a gathering of regional bank executives, Ueda said the central bank will raise rates if improvements in the economy and prices continue.
The new US administration’s economic policy and momentum of this year’s wage negotiations in Japan are key in deciding the rate-hike timing, he said.
“There was a lot of positive talk on the wage outlook” when the BOJ’s regional branch managers met last week, Ueda said.
“We are currently analyzing data thoroughly and will compile the findings in our quarterly outlook report. Based on that, we will discuss whether to raise interest rates at next week’s policy meeting and would like to reach a decision.”