Bank of Japan leaning towards easing but not a done deal: Sources

The Bank of Japan is leaning towards easing monetary policy again next week, sources familiar with the matter said, but disagreement within the board on how to justify the move means it's not a done deal.

By easing policy now, the BOJ may avert government pressure and get some breathing space after facing repeated calls from Japan's finance minister for fresh action to achieve 1% inflation.

But many on the board are leaving their options open as they are struggling to justify such a move, and heated debate may result in a split vote when the board meets on March 16-17.

"The economy is in good shape, so I wonder if everyone sees the need for action now," a source familiar with the BOJ's thinking said. Another source expressed a similar view. Both declined to be named due to the sensitivity of the matter.