The Bank of Japan kept its policy rate unchanged at 1.25% at last week's meeting, but experts have pointed to the possibility of raising the policy rate to 1.5% through a rate hike in December this year.
The Bank of Japan was reported to have kept its short-term interest rate unchanged at 1.25% last Friday. Meanwhile, the inflation forecast was revised upward in its economic outlook, and the Bank is said to be considering further rate hikes to contain rising inflation risks.
Several experts have suggested that the Bank of Japan is likely to raise rates further at its December monetary policy meeting, lifting the policy rate to 1.5%, against the backdrop of an inflation outlook near 2%.
Governor Ueda (植田) reiterated that it is important to keep core CPI around 2% and expressed his intention to continue adjusting the policy rate and the degree of monetary accommodation in response to developments in economic activity, prices and financial conditions.
Experts' views are broadly aligned, and attention is expected to shift to discussions of the timing of a rate hike at the next meeting and when hikes might stop.