Bank of Japan officials are open to choosing a faster pace of interest rate hikes than economists generally expect, as the continued weakness of the yen increases the risk of rising inflation, according to people familiar with the matter. Markets generally expect that the Bank of Japan will keep its policy unchanged at the July 31 meeting. The bank raised its benchmark interest rate to 1% last month, the highest level in 31 years. Most BOJ observers expect the bank to raise interest rates again in December. They said that the bank's officials know that many central bank observers expect it to act every six months or so, but if necessary, they do not rule out that it will act sooner, and there is no predetermined schedule.

Bank of Japan officials are open to choosing a faster pace of interest rate hikes than economists generally expect, as the continued weakness of the yen increases the risk of rising inflation, according to people familiar with the matter. Markets generally expect that the Bank of Japan will keep its policy unchanged at the July 31 meeting. The bank raised its benchmark interest rate to 1% last month, the highest level in 31 years. Most BOJ observers expect the bank to raise interest rates again in December. They said that the bank's officials know that many central bank observers expect it to act every six months or so, but if necessary, they do not rule out that it will act sooner, and there is no predetermined schedule.