Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will debate next week whether to raise interest rates, based on its fresh quarterly growth and inflation forecasts. In remarks made at a meeting with regional bank executives,

The yen surged as Bank of Japan Governor Kazuo Ueda joined his deputy in strengthening market expectations for a potential interest-rate hike next week, signaling the central bank is doing its utmost to avoid a global market crash that followed July’s hike.

Bank of Japan Gov. Kazuo Ueda echoed recent comments that have revived market expectations for imminent policy action.

Japan's annual wholesale inflation held steady at 3.8% in December on stubbornly high food costs, data showed on Thursday, highlighting persistent price pressures that may prod the central bank to raise interest rates next week.

Following Ueda’s remarks, the yen strengthened as much as 0.4% to ¥157.34 against the dollar, after earlier hovering around the ¥158 level.

Bank of Japan (BoJ) Governor Kazuo Ueda said on Thursday that the board members “will debate at next week's meeting whether to hike rates.” Will raise policy rate this year if economic, price conditions continue to improve. How to proceed with monetary policy adjustment will depend on economic, price, financial conditions at the time.

Speaking at a gathering of regional bank executives, Ueda said Japan’s central bank would raise interest rates if improvements in the economy and prices continue