The Bank of Japan started its last monetary policy meeting of the year on December 18.  

Within the BOJ, the majority view is that the domestic economy and prices are performing as expected and that the environment is ripe for an additional interest rate hike.  

However, in deciding on raising interest rates, BOJ Governor Ueda Kazuo has indicated that he would like to carefully assess the trend of wage increases next spring and the outlook for the US economy.  

Some within the BOJ have commented that three rate hikes in a year would be seen as too aggressive, and that the current phase of interest rate hikes is important.  

The Bank is inclined to hold off on a rate hike this time and wait until January next year, when more data and information will be gathered.  

If an additional rate hike is postponed at the meeting on December 19, what Governor Ueda will say about the pace of future rate hikes at his press conference will have an impact on the foreign exchange market and other markets as well.