The Bank of Japan is leaning towards keeping interest rates unchanged next week

On December 12, five sources familiar with the Bank of Japan's thinking said that the Bank of Japan is inclined to keep interest rates unchanged next week, as policymakers tend to spend more time examining overseas risks and clues about wage increases next year. Any similar decision would increase the likelihood that the Bank of Japan will raise interest rates at its meeting in January or March next year, when more information on wage increases next year will be available. The sources also said that there is no consensus within the Bank of Japan on the final decision, and some on the committee still believe that Japan has met the conditions for a December rate hike. The decision will depend on each member's belief in the likelihood of Japan achieving wage-driven sustained price increases. The BoJ is also likely to favour a rate rise if upcoming events, such as next week's meeting of the Federal Reserve, trigger another plunge in the yen, adding to inflationary pressures. But overall, many BoJ policymakers appear in no hurry to pull the trigger.