By Megumi Fujikawa
TOKYO--A summary of opinions from the Bank of Japan's December meeting suggests that the next interest rate hike is approaching, with policymakers assessing that the economy and inflation are moving in line with its projections.
"The bank will likely decide to raise the policy interest rate in the near future, but at this point it is necessary for the bank to be patient and monitor the uncertainties over the U.S. economy until those uncertainties subside," one of the nine policy board members said at the meeting held on Dec. 18 and 19.
The summary showed that the bank's policy board was growing more confident about its economic outlook but it also wanted to wait for risks to clear further. The BOJ's summary of opinions doesn't identify individual speakers.
At the meeting, the bank maintained its policy rate at 0.25%. Gov. Kazuo Ueda has said he wants to see more evidence of strong momentum at next year's wage negotiations and gather more information about U.S. economic policies under President-elect Donald Trump.
One board member said wage growth over the past three years hasn't caught up with inflation, and it would be desirable to see relatively high wage increases next year, according to the summary.
Board member Naoki Tamura proposed a rate hike to 0.5% at the December meeting, saying that risks to inflation are skewed to the upside. Tamura is a former Sumitomo Mitsui Financial Group executive and considered hawkish.
"As price increases have continued for three years, the rise in import prices--mainly reflecting the depreciation of the yen--will likely lead to a further increase in underlying inflation and thereby to the achievement of the price stability target," the summary quoted one member as saying.
"Given this, it is necessary for the bank to adjust the degree of monetary accommodation in a preemptive manner," the member added.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
December 26, 2024 19:58 ET (00:58 GMT)
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