BOJ's Ueda Considers Another Rate Hike Amid Inflation Worries

Bank of Japan (BOJ) Governor Kazuo Ueda is set to continue raising interest rates to adjust still-accommodative financial conditions, but will debate this month whether upside inflation risks are heightening. This could keep alive the chance of a September hike.

In a recent news conference, Ueda stated that he hopes to discuss with the board this month whether the likelihood of the BOJ's economic scenario materialising is increasing and whether upside price risks are growing - both prerequisites for further rate increases.

The BOJ raised interest rates to a 31-year high of 1% in June, but kept rates steady in July. However, it signalled a strong chance of a near-term hike on mounting price pressures from the Middle East conflict and a weak yen.