BOJ Eyes Quarter-Point Hike Amid Inflation Risks

The Bank of Japan (BOJ) is considering raising its benchmark interest rate by a quarter point this month, according to people familiar with the matter.

This potential hike would increase the policy rate from 1% and comes in response to upward price risks. BOJ officials will discuss this possibility at their two-day meeting ending on September 18.

The decision is seen as a result of inflation risks being skewed to the upside, with service prices and ongoing weakness in the currency contributing to the case for action.