BOJ Governor Ueda: Wage Trends Crucial for Potential Interest Rate Hikes

According to a report from Nikkei, Bank of Japan (BOJ) Governor Kazuo Ueda stated that the next interest rate hikes are “approaching in terms of economic data coming in.” Ueda reiterated his intention to closely monitor wage movements, saying, “I want to see what kind of momentum the fiscal 2025 shunto (spring wage negotiations) creates.” Ueda also noted that there is a significant question mark regarding the outlook for U.S. economic policy, indicating that the central bank would not rush to raise interest rates with the inauguration of President Donald Trump in January. The BOJ will review its policy at the meeting on December 18-19, where some analysts expect it to raise rates from the current 0.25%.