BOJ discusses raising interest rate | NHK WORLD-JAPAN News
Policymakers at the Bank of Japan are taking a close look at inflation as they decide whether to hike their policy rate at a two-day meeting that opened on Thursday.
They are considering raising the key rate from around 1 percent to 1.25 percent.
It's believed the BOJ will confirm that underlying inflation is approaching their target of 2 percent as prices of food and other items continue to rise.
Concerns are growing at the central bank that inflation could climb well above that target.
Soaring oil prices stemming from the Middle East situation are one focus of attention. Exchange rate trends affecting the yen and strong demand related to the AI boom are other factors under scrutiny.
The bank's last rate increase came in June. Another one this week would mean accelerating the pace of tightening.
Rate hikes earlier this cycle arrived roughly once every six months. Raising the policy rate to 1.25 percent would put it at the highest level since 1995 -- more than 30 years ago.
