The flag of Japan flutters at the Bank of Japan headquarters in Tokyo on Dec. 19, 2023.
The Bank of Japan is likely to debate whether to raise interest rates when it meets next week and unveil a plan to roughly halve bond purchases in coming years, sources said, signaling its resolve to steadily unwind its massive monetary stimulus.
"The decision will be a close call and a hard one to make," given uncertainty over the consumption outlook, one of the sources said.
"It's really a judgment call, in terms of whether to act now or later this year," another person said.
While the nine-member board broadly agrees on the need for a near-term rate hike, there is no consensus on whether it should happen next week or later in the year, they said.
Organizations:
Bank of Japan, The Bank of, Reuters
Locations:
Japan, Tokyo, The Bank of Japan
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