Some Bank of Japan officials view it a close call as to whether the policy board will add to stimulus at a meeting later this week, according to people familiar with discussions at the central bank.
Officials will be carefully watching economic data and market movements until the gathering ends on Jan. 29, said the people, who asked not to be identified because the talks are private.
It could be argued that the inflation outlook has worsened given the deeper slump in oil prices and dimming prospects for faster gains in base wages, they said. They also cautioned that the recent rout in global markets has not hit Japanese economic indicators, and that spring wage negotiations are not over yet.