BOJ meets Jan 2324, decision expected 03300430GMT Friday
Board likely to raise shortterm rates to 0.5 from 0.25
BOJ seen raising price forecast, flag brightening wage outlook
Markets focusing on hints on pace, timing of subsequent hikes
Governor Ueda to brief media 0630GMT Friday

TOKYO, Jan 20 Reuters The Bank of Japan is expected to raise interest rates on Friday barring any market shocks when U.S. Presidentelect Donald Trump takes office, a move that would lift shortterm borrowing costs to levels unseen since the 2008 global financial crisis.

A tightening in policy would underscore the central bank39;s resolve to steadily push up interest rates, now at 0.25, to near 1 a level analysts see as neither cooling nor overheating Japan39;s economy.

At the twoday meeting ending on Friday, the BOJ is likely to raise its shortterm policy rate to 0.5 unless Trump39;s inaugural speech and executive orders upend financial markets, sources have told Reuters.

In a quarterly outlook report, the board is also expected to raise its price forecasts on growing prospects that broadening wage gains will keep Japan on track to sustainably hit the bank39;s 2 inflation target.

A hike by the BOJ would be the first since July last year when the move, coupled with weak U.S. jobs data, shocked traders and triggered a rout in global markets in early August.

Keen to avoid a recurrence, the BOJ has carefully prepared markets with clear signals by Governor Kazuo Ueda and his deputy last…