By Kentaro Sugiyama
TOKYO (Reuters) -The Bank of Japan will raise interest rates and adjust the degree of monetary support if improvements in the economy and price conditions continue, Governor Kazuo Ueda said on Wednesday.
The new U.S. administration’s economic policy and momentum of this year’s wage negotiations in Japan are key in deciding the rate-hike timing, Ueda said at a gathering of regional banks.
“There was a lot of positive talk on the wage outlook” when the BOJ’s regional branch managers met last week, Ueda said.
“We are currently analysing data thoroughly and will compile the findings in our quarterly outlook report. Based on that, we will discuss whether to raise interest rates at next week’s policy meeting and would like to reach a decision,” he said.
Ueda’s remark comes a day after BOJ Deputy Governor Ryozo Himino said the central bank would debate whether to raise interest rates at next week’s policy meeting.