BOJ deputy governor signals possibility of rate hike next week Via Reuters

By Leika Kihara

YOKOHAMA (Reuters) – The Bank of Japan will debate whether to raise interest rates at its policy meeting next week based on its latest quarterly and inflation forecasts, Deputy Governor Ryozo Himino said. said on Tuesday.

Speaking to businessmen in the city of Yokohama, Himino said various studies and reports from regional branches of the central bank have increased the hope that earnings growth will remain strong this year.

He added that the US economy is likely to remain strong for now, and the “broad direction” of US economic policy is likely to be clear in President-elect Donald Trump’s speech on January 20.

“The board will discuss whether to raise the interest rate next week and reach a decision, based on the economic and price forecasts mentioned in our quarterly report,” said Himino.

The BOJ will conclude a two-day policy meeting on January 24 and release a forecast report with new quarterly growth and inflation estimates.