TechFlow news, on December 12, according to Jinshi News, five sources familiar with the Bank of Japan's thinking said the central bank is inclined to hold interest rates steady at its meeting next week, as policymakers prefer to take more time to assess overseas risks and clues about next year's wage growth. Any such decision would increase the likelihood of the BOJ raising rates at its January or March meetings next year, when more information on wage increases will be available.
The sources also said there is no internal consensus yet on the final decision, with some members of the committee still believing that Japan has already met the conditions for a rate hike in December. The decision will depend on each member’s belief in the possibility of Japan achieving sustained price increases driven by wages. If upcoming events—such as the Federal Reserve's meeting next week—trigger another sharp fall in the yen and thereby intensify inflationary pressures, the BOJ could also lean toward a rate hike. But overall, many BOJ policymakers do not appear eager to pull the trigger.
