TOKYO (Kyodo) -- Bank of Japan Governor Kazuo Ueda said Wednesday the bank will debate whether to raise its key rate at its policy meeting next week amid increasing market speculation that the next rate hike is coming soon.

Speaking at an industry event in Tokyo, Ueda said the bank will decide if it needs to increase its policy rate from around 0.25 percent, adding that he is seeing positive signs in the country's wage trend.

"If the situations surrounding the economy and prices continue to improve this year, we will hike rates accordingly," he said.

The remarks followed similar ones by the central bank's deputy chief Ryozo Himino a day before, adding to the speculation that the policy rate could be raised to around 0.5 percent at the two-day meeting from Jan. 23, a level unseen since October 2008.

In its quarterly report released earlier this month, the BOJ said companies in a wide range of industries share a view that sustained salary growth is necessary mainly due to a labor shortage.

After the previous policy meeting in mid-December, in which the bank kept the key rate unchanged, Ueda said he would await more data to see if the wage hike momentum was maintained.