Odaily Planet Daily News According to informed sources, Bank of Japan officials are preparing to consider a 25 basis point increase in the benchmark interest rate this month and believe further rate hikes are possible later this year. The sources said the Bank of Japan may discuss raising the policy rate to 1% at the meeting concluding on June 16. Officials also believe that, given real interest rates remain low and inflation faces ongoing upside risks, there is room for further rate increases. Due to the high uncertainty surrounding the situation in the Middle East, officials will screen as much data and information as possible until the last moment before making a final decision. They indicated there may be some dissenting voices against the rate hike at the meeting, but not enough to sway the decision. Another key focus of the meeting will be the Bank of Japan's latest plan for tapering its bond purchases. According to informed sources, officials believe it is not necessary to maintain the current pace of purchase reduction from April next year. The sources stated that policymakers believe the functioning of the Japanese government bond market has improved, so they may consider slowing the pace of reductions, or even pausing them entirely. (Jin Shi)

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