The Bank of Japan’s Policy Board is holding a quarterly Monetary Policy Meeting on July 30 and 31, where it plans to discuss whether to raise interest rates further.

There is a view within the BOJ that additional interest rate hikes should be considered, as prices are trending in line with forecasts towards realizing the 2% price stability target.

However, there are indications of weakness in private consumption, and some say that more time should be given to assess consumption trends.

Some market participants believe that the BOJ's decision on whether to raise interest rates is ‘50-50’, and their decision is being closely watched.

During this meeting, the board will also decide on a one-to-two-year plan to reduce long-term bond purchases made as part of its large-scale monetary easing program.

Many market participants believe that in two years' time, the monthly purchases will be reduced by half from the current level of around six trillion yen to around three trillion yen.