Three people familiar with Bank of Japan policy thinking told foreign media the central bank could raise rates as soon as September and is considering a more aggressive tightening path than the current roughly two hikes per year. The prospective move reflects growing concern about price pressure from the Middle East conflict, strong global AI-driven demand and persistent yen weakness despite a rare Japan‑US coordinated FX intervention last month.

One source said a rate hike "has entered the view," implying a likely move at the Sept. 17-18 policy meeting. The source added the bank may speed up the pace of hikes; a second source gave a similar account.