BOJ chief says inflation risks could prompt interest rate hike

The governor of the Bank of Japan said that rising inflation risks may force a policy shift. He indicated that the central bank could raise interest rates if price pressures intensify. The statement reflects concerns about Japan’s prolonged low‑inflation environment. Market observers see the comment as a possible move away from ultra‑easy monetary policy. The BOJ chief’s remarks were reported by Asahi Shimbun. A rate hike would be the first in several years for the Japanese economy. Such a change could affect borrowing costs and the yen’s exchange rate. Policymakers will monitor inflation data before deciding on any adjustment.