In explaining the rationale for the interest rate hike earlier this week, Bank of Japan Deputy Governor Ryozo Himino stated that the trend of rising prices in Japan carries a risk of accelerating beyond the central bank's 2% inflation target.

"We are observing that the pass-through of rising costs in transactions between companies has accelerated slightly, and we believe this could ultimately spread to a broader range of consumer goods and services," Himino said on Friday while responding to questions in parliament.

"As you pointed out, there is a risk that underlying inflation could accelerate beyond the Bank's 2% price stability target."

Himino is the first central bank official to speak publicly since the Bank of Japan raised its benchmark interest rate to its highest level in 31 years on Tuesday.

He reiterated the central bank's commitment to continue raising interest rates based on economic and price developments, but did not provide any clear indication regarding the potential timing of future hikes.