BOJ May Consider Additional Rate Hike in Sept.

Tokyo, Aug. 11 (Jiji Press)--The Bank of Japan may consider an additional interest rate increase at its next policy meeting Sept. 17-18, following a hike in June, in response to rising risks of higher inflation, informed sources said.

Prices in Japan may rise further reflecting 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.

At the BOJ's latest policy-setting meeting July 30-31, however, some members of its Policy Board said interest rate hikes should be accelerated, according to a summary of opinions at the meeting released Monday.

One member was quoted as saying, "It could be considered that the pace of policy interest rate hikes will be faster than market expectations," while another said it is necessary for the BOJ "to accelerate the pace of adjustment to the degree of monetary accommodation."

[Copyright The Jiji Press, Ltd.]