The Deputy Governor of the Bank of Japan, Shinichi Uchida, stated that the central bank will base any future decisions to raise interest rates on ongoing developments in the nation's price trends.

He indicated that the Bank of Japan will evaluate the likelihood of achieving its economic outlook and will take various risks into account when determining the pace of any further rate increases.

Uchida remarked that even with Tuesday's rate hike, financial conditions remain accommodative, and the policy rate continues to support the economy.

He noted that price trends could potentially exceed the central bank's 2% target.

The Bank of Japan raised its benchmark interest rate to its highest level in 31 years and announced plans to halt the reduction of its bond-buying program.