Japanese media, citing people familiar with the matter, report the Bank of Japan could raise its policy rate again at the Sept. 17-18 policy meeting after a June increase, citing rising inflation risks driven by rapid AI-related demand growth, a sharp yen depreciation and higher oil prices.

Markets had previously expected roughly six-month spacing between hikes. Minutes from the BOJ’s July 30-31 meeting showed some board members urged a faster pace of tightening; one said the pace of policy-rate increases could exceed market expectations, another said it was necessary to speed up the adjustment of monetary easing.