Bank of Japan's December Rate Decision

According to sources cited by Kyodo News on Friday, the Bank of Japan (BOJ) is unlikely to raise interest rates at its December meeting next week. This decision comes amidst a backdrop of economic uncertainty, influenced by factors such as US President-elect Donald Trump's tariff strategy and anticipated wage hikes in Japan set for spring 2025.

Monetary Policy and Economic Stability

Insiders suggest that the BOJ is holding off on further monetary tightening to maintain economic stability. Governor Kazuo Ueda has previously indicated that the central bank might consider raising interest rates if economic and inflation trends align with their projections. However, the current economic climate, characterized by global political shifts and domestic wage dynamics, has led the BOJ to adopt a cautious approach.