The Bank of Japan is reportedly paying increasing attention to the inflationary effects or impacts on future interest rate hikes caused by the weakness of the Japanese yen.

Insiders say that officials at the Bank of Japan are increasingly concerned about the potential impact of the yen on inflation. After possibly maintaining interest rates next week, this attitude may have an impact on future rate hikes. Following this news, the yen against the US dollar erased its losses and is currently holding steady. Insiders say that officials believe that the weakening yen is becoming a more significant factor, especially as businesses are increasingly inclined to pass on higher input costs to customers. Although officials have not set a predetermined path for interest rates, given that the central bank raised the benchmark rate last month, the yen's movements may prompt them to advance future rate hikes. Private economists generally expect the Bank of Japan to raise rates approximately every six months, with the next likely to take place in the summer.