The Bank of Japan will debate whether to raise interest rates next week, Governor Kazuo Ueda said on Wednesday, reiterating the bank's resolve to push up borrowing costs if the economy continues to improve.

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 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.