BOJ Weighs Additional Rate Hike Amid Inflation Fears

The Bank of Japan (BOJ) may consider an additional interest rate hike at its September policy meeting, according to informed sources. This move would follow a previous hike in June and be in response to rising inflation risks.

The BOJ's latest policy-setting meeting on July 30-31 saw some members of the Policy Board suggest accelerating interest rate hikes. One member noted that 'it could be considered that the pace of policy interest rate hikes will be faster than market expectations.'

Financial market participants had previously expected the BOJ to raise interest rates every six months, but rising demand for AI-related goods and a sharp depreciation of the yen are contributing to inflationary pressures.