Bank Of Japan Likely To Maintain Interest Rates Amid Global Risks

According to Odaily, the Bank of Japan (BOJ) is inclined to keep interest rates unchanged in the upcoming week. This decision reflects the central bank's preference to spend more time assessing overseas risks and gathering insights on next year's wage growth. Such a move could increase the likelihood of a rate hike in the BOJ's meetings scheduled for January or March next year, when more information on wage increases will be available. Insiders familiar with the BOJ's thinking indicate that there is no consensus within the bank regarding the final decision. Some committee members believe that Japan has already met the conditions for a rate hike in December. The decision will largely depend on each member's confidence in Japan's ability to achieve sustained price increases driven by wage growth. The BOJ may also consider a rate hike if upcoming events, such as next week's Federal Reserve meeting, lead to a sharp depreciation of the yen, thereby intensifying inflationary pressures. However, overall, many BOJ policymakers appear to be in no rush to make a move.