Insiders: The Bank of Japan is likely to maintain the Interest Rate unchanged next week.

The December 12th data from Jinshi News, five sources familiar with the thoughts of the Japanese Central Bank said that the Japanese Central Bank is inclined to keep the Intrerest Rate unchanged next week because decision-makers tend to spend more time examining overseas risks and clues to next year’s wage increases. Any such decision would increase the likelihood of the Japanese Central Bank raising interest rates at its meetings in January or March next year, when there will be more information about next year’s wage increases. Sources also said that there is no consensus within the Japanese Central Bank on the final decision, and some members of the committee still believe that Japan has met the conditions for raising interest rates in December. This decision will depend on each member’s belief in the likelihood of Japan achieving sustained inflation pressure driven by wages. If upcoming events, such as the meeting of the Federal Reserve next week, trigger another big dump of the yen and further exacerbate inflationary pressures, the Japanese Central Bank may also support a rate hike. But overall, many Japanese Central Bank decision-makers do not seem to be in a hurry to pull the trigger.