The Bank of Japan kept interest rates steady on Tuesday but three in the nine-member board proposed hiking borrowing costs, signalling the bank’s concern over inflationary pressures from the Middle East conflict.
As widely expected, the central bank left unchanged its short-term policy rate at 0.75% in a two-day meeting that ended on Tuesday. Board members Hajime Takata, Naoki Tamura and Junko Nakagawa dissented to the decision, instead calling for a hike to 1.0%.
BOJ Governor Kazuo Ueda is expected to brief media on the decision at 3:30 p.m. (0630 GMT).