Bank of Japan policymakers signaled at their July 30-31 meeting that interest rates may need to rise faster than markets had expected as inflation risks build, reinforcing expectations that the central bank could consider another hike at its next policy meeting after leaving the policy rate unchanged at 1%. Jiji Press, citing unnamed sources familiar with the matter, reported that the policy board is leaning toward a rate increase in September, though no final decision has been made. The report said persistent inflation above the BOJ's 2% target and signs of stronger wage growth are supporting the case for another move as the central bank continues to normalize policy after ending negative rates and delivering its first rate increase in 17 years earlier in 2024. Markets are also watching the potential impact on the yen, Japanese bond yields and global capital flows, while policymakers continue to stress that any decision will depend on incoming data and broader market conditions.