Remarks by Kazuo Ueda, governor of the Bank of Japan

- BOJ Governor Ueda said that he will raise interest rates and adjust the degree of monetary support if the improvement in the economy and price conditions continues.

-The bank will make a decision next week.

- Developments in the US economy should be monitored.

-The momentum heading into the wage negotiations in the spring is crucial.

It is certain that the discussion of raising interest rates will take place next week, but will Action be taken ?  

The Bank of Japan may say that the time has not yet come to raise interest rates despite the positive wage outlook, the Bank of Japan seems to be hesitant, and the disagreement may continue to raise interest rates for the time being.

The policy board may wait for more data in order to reach a greater consensus on raising interest rates in March, but the yen's gains today after Ueda's statements may indicate the possibility of raising interest rates in January, as the Japanese yen rose significantly today against most currencies, rising by more than 0.5% against the US dollar.

His comments come just a day after Deputy Governor Ryuzo himino said the BOJ would discuss whether to raise interest rates at next week's policy meeting.

Markets are now pricing in a 70% chance of a 25 basis point increase next week.

It should be noted that the Bank of Japan meeting is on January 23 and 24.