Source: Bank of Japan inclined to keep interest rates unchanged next week

The Bank of Japan is inclined to keep interest rates unchanged next week as policymakers prefer to spend more time examining overseas risks and clues about wage growth next year, five sources familiar with the central bank's thinking said. Any such decision would increase the likelihood of a rate hike at the Bank of Japan's meeting in January or March next year, when there will be more information on wage growth next year. The sources also said there was no consensus within the Bank of Japan on the final decision, and some on the board still believed that Japan had met the conditions for a December rate hike. The decision will depend on each member's belief in the likelihood of Japan achieving sustained wage-driven price increases. The Bank of Japan is also likely to favor a rate hike if upcoming events such as the Federal Reserve's meeting next week trigger another sharp drop in the yen, which in turn increases inflationary pressures. But overall, many Bank of Japan policymakers do not seem to be in a hurry to pull the trigger. (Jinshi)