Japanese media: Bank of Japan may keep interest rates unchanged next week

The Bank of Japan is likely to keep interest rates unchanged at its meeting next week, according to multiple Japanese media reports. People familiar with the matter said that Bank of Japan policymakers believe that although the Japanese economy and prices are moving in line with expectations, they should keep a close eye on wage trends in Japan and the global economy. The above-mentioned people familiar with the matter said that policymakers are therefore unlikely to raise interest rates at their meetings next Wednesday and Thursday unless there is a risk of a sharp depreciation of the yen, which would push up import prices. The last time Bank of Japan policymakers voted to raise their short-term policy rate target to 0.25% was at a meeting in July. The December meeting comes amid growing concerns that the profitability of Japanese companies, especially exporters, will deteriorate as U.S. President-elect Trump promises to raise tariffs. Some Bank of Japan officials said it was time to raise interest rates, but most believed the central bank should not act hastily, people familiar with the matter said. (Jinshi)