Bank of Japan (BOJ) Governor Kazuo Ueda has announced that the central bank will consider raising its key interest rate at its upcoming policy meeting amid growing market speculation about a potential hike, Kyodo News reported.

If implemented, it would be the Bank of Japan's first hike to that level since October 2008. I Photo: ykanazawa1999 Flickr
Speaking at an industry event in Tokyo, Ueda noted that the bank is monitoring positive trends in wage growth and will decide whether to raise the policy rate from its current level of around 0.25%.
“If the economy and price situations continue to improve this year, we will hike rates accordingly,” he said.
This follows similar remarks by Deputy Governor Ryozo Himino on Tuesday, which fueled expectations of a possible rate increase to 0.5% during the two-day meeting starting January 23.
If implemented, it would be the first hike to that level since October 2008.
Earlier this month, the BOJ's quarterly report indicated that many industries view sustained wage growth as essential, mainly due to ongoing labor shortages.
After maintaining the current rate during its December meeting, Ueda emphasized the need for additional data to confirm the momentum of wage increases, as reported by Mainichi Japan.
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