Written by Laika Kihara
YOKOHAMA (Reuters) – The Bank of Japan will discuss whether to raise interest rates at next week's policy meeting based on its forecast for new quarterly growth and inflation, Bank of Japan Deputy Governor Ryozo Himeno said on Tuesday.
In a speech to business leaders in the city of Yokohama, Himeno said various surveys and reports from the central bank's regional branches raised hopes that wage growth would remain strong this year.
He also added that the US economy is likely to remain strong for the time being, and the “general direction” of US economic policy will likely become clear in President-elect Donald Trump's inauguration speech on January 20.
“The board will discuss whether to raise interest rates next week and reach a decision, based on the economic outlook and price forecasts set out in our quarterly outlook report,” Himeno said.
The Bank of Japan is scheduled to conclude its two-day policy meeting on January 24 and release its outlook report with new quarterly growth and inflation forecasts.
