By Leika Kihara
YOKOHAMA (Reuters) -The Bank of Japan will debate whether to raise interest rates next week, as prospects of sustained wage gains heighten and the U.S. policy outlook becomes clearer in President-elect Donald Trump’s inaugural address, Deputy Governor Ryozo Himino said.
In a speech to business leaders in the city of Yokohama, Himino said on Tuesday it would “not be normal” for real interest rates to remain negative once Japan had overcome shocks and factors that caused deflation.
Various surveys and reports from the central bank’s regional branches had heightened hopes that wage growth would remain strong this year, he said.
Himino also said the U.S. economy was likely to remain strong for the time being, and the “broad direction” of U.S. economic policy would likely become clear in Trump’s inaugural address on Jan. 20.
“The board will discuss whether to raise interest rates next week and reach a decision, based on…
