BOJ Weighs Additional Rate Hike Amid Inflation Risks

The Bank of Japan (BOJ) may consider an additional interest rate hike at its next policy meeting on September 17-18. According to informed sources, this decision would be in response to rising inflation risks caused by rapidly growing demand related to artificial intelligence and the yen's sharp depreciation as well as higher crude oil prices.

Many financial market participants had expected the BOJ to raise interest rates once about every six months. However, at its latest policy-setting meeting on July 30-31, some members of the Policy Board suggested accelerating interest rate hikes.

One member was quoted as saying that the pace of policy interest rate hikes could be faster than market expectations. Another member emphasized the need to accelerate the pace of adjustment to the degree of monetary accommodation.