“With receding uncertainties surrounding the US economy and President Donald Trump’s tariff policies, the likelihood of the BOJ’s economic and price projections being met is increasing,” he said.

“Labour shortages are becoming more acute, corporate profits remain at high levels on the whole and Japan’s corporate lobby has called for anchoring solid wage gains,” Ueda said in a speech to business leaders in Nagoya.

“The BOJ is at the stage where it should examine whether firms’ active wage-setting behavior will continue,” he said.

Ueda said the BOJ was actively collecting information on wage hikes with surveys conducted at firms by its head office and branches.

“We will examine and discuss economic and price developments at home and abroad, as well as market moves … and consider the pros and cons of raising interest rates,” he said.