FOCUS: Yen, oil prices may pick up BOJ rate increase even after hike to 31-year high

TOKYO - Facing a greater risk of faster price rises from a surge in oil prices coupled with a weaker yen, the Bank of Japan may need to accelerate the pace of policy interest rate hikes to guide inflation to its 2 percent target, economists say.

The Japanese central bank on Tuesday raised the policy rate to 1 percent, the highest since 1995, from 0.75 percent. The decision was the first hike since December last year and the fifth since the BOJ made the first increase in 17 years in March 2024.