Bank of Japan may raise interest rates in December

VTV.vn - The Bank of Japan (BOJ) could raise interest rates as early as December, when conditions for normalizing monetary policy are said to be met.

According to minutes of the October meeting just released, a BOJ board member said "it is likely that the conditions for a further move have been largely met." The BOJ is currently maintaining its policy rate at 0.5%.

Bank of Japan Governor Kazuo Ueda also signaled earlier that another hike could come "in the coming months," keeping markets focused on a policy meeting on December 19.

Policymakers are watching the annual round of wage negotiations later this year, which will be crucial in determining the timing of any rate hike. Despite the uncertainties, the BOJ has said any rate hike will depend on the economic outlook and the pace of wage growth at Japanese companies.

Statistics from Japan's Ministry of Health , Labor and Welfare show that real wages have fallen for nine consecutive months through September 2025 (excluding home prices).

Economist Hideo Kumano at the Dai-ichi Life Institute of Economic Research said that this is the time for people to proactively find ways to increase their income, such as working part-time or investing, instead of just waiting for a salary increase from the company. When spending has reached a limit, increasing income is the only solution to balance finances.

Prime Minister Sanae Takaichi's administration is currently rushing to complete a new economic solution package with three pillars: Ensuring social security and responding to inflation; promoting economic growth through investment in crisis management and strategic areas; and strengthening defense and diplomatic capacity.

Responding to rising prices is the most important task with synchronous solutions such as supporting electricity and gas costs in the period from January to March 2026; expanding the Local Support Fund to subsidize school lunches and support food purchases for households; subsidies to help increase salaries for people working in the medical and nursing fields and improve benefits for people with disabilities, etc.

Source: https://vtv.vn/ngan-hang-trung-uong-nhat-ban-co-the-tang-lai-suat-vao-thang-12-100251111051313249.htm