Bank of Japan officials see a good chance of an interest rate hike next week as long as the arrival of Donald Trump at the White House doesn’t trigger too many negative surprises, according to people familiar with the matter.

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.

Bank of Japan Gov. Kazuo Ueda said at an event on Wednesday that the BOJ will raise rates next week if economic indicators show improvement. He added that he is aware of "many positive stories" of higher wages.

Bank of Japan Deputy Governor Ryozo Himino reiterated that the central bank will raise rates if its outlook continues to be realized, while adding that there are risks both at home and abroad that require attention.

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 Governor Kazuo Ueda said Wednesday the bank will debate whether to raise its key rate at its policy meeting next week a

Governor Kazuo Ueda yesterday joined his deputy in raising market expectations of a potential interest rate hike next week, boosting the yen and signaling the central bank is doing its utmost to avoid a global market crash that followed the rate hike in July last year.

The Bank of Japan will debate whether to raise interest rates next week, Governor Kazuo Ueda said on Wednesday, signaling its intention to take borrowing costs higher barring a Trump-driven market shock.

Bank of Japan Deputy Governor Ryozo Himino has signaled that an interest rate hike may be on the cards at the monetary policy meeting on January 23-24, as many of the shocks to the Japanese economy and deflationary factors have been resolved.