Report: Division in opinions among Bank of Japan members regarding next week's interest rate decision.
The American news agency Reuters published another report on Thursday regarding the monetary policy decision of the Bank of Japan at the meeting scheduled for next week.
Reuters reported, citing five sources familiar with the discussions at the Bank of Japan, that there is currently no clear consensus on the decision the central bank may take at the December meeting.
According to agency sources, this stems from some policymakers feeling that conditions are favorable for another hike in interest rates.
However, they mentioned that overall, many policymakers at the Bank of Japan believe they should not rush into a decision given the low risk of inflation deviating from the bank's expectations.
The sources indicated that members of the bank want to avoid suggesting that the Bank of Japan is hastening to raise interest rates toward neutral territory, but they believe there is an increasing conviction that conditions have become suitable for raising rates again.
On the other hand, the Bank of Japan may feel more compelled to raise rates if the Federal Reserve decides on Wednesday to further weaken the value of the yen, although the chances of that being a key basis for the Bank of Japan's decision to raise interest rates are somewhat slim.
According to reports, one of the Reuters sources stated that unless the U.S. Federal Reserve stops, which would lead to a rise in the value of the dollar, this could pressure the Bank of Japan to act in order to slow down any significant decline in the yen's value through intervention in the forex market.