BOJ nears decision on raising interest rates

Bank of Japan (BOJ) officials are nearing a decision on raising interest rates, with the outcome uncertain ahead of the next policy meeting, as per a Bloomberg report on Tuesday.

Furthermore, they will assess spring wage talks results due Friday, which could influence a rate increase decision in March, though some suggest waiting for April data.

Officials are readying for both scenarios at the March 18-19 meeting, signalling the bank is nearing liftoff.

Governor Kazuo Ueda’s view may sway the decision, while considering signaling a future rate hike if they hold. Despite market speculation, economists still favour April for a rate hike.

Positive wage increase figures from Rengo could bolster the case for a March hike, though officials stress the need for more data for a conclusive decision in April.

A move this month could lead to perceptions of a hawkish stance and speculation about further rate increases.