BOJ Signals Steady Stance Despite Hawkish Mood

The Bank of Japan (BOJ) is set to keep interest rates steady on Friday but signal its resolve to continue pushing up borrowing costs, according to market expectations.

This move comes as mounting price pressures from a weak yen and the Middle East conflict risk driving underlying inflation above the BOJ's 2% target.

Hawkish board member Hajime Takata may dissent and propose a hike to 1.25%, some analysts say, echoing the hawkish signals from other central banks focusing on inflation risks from the Iran war-induced energy shock.