This comes as the BOJ was revealed to have considered further rate hikes at its January meeting, warning of inflation risks and a weak yen.

Japanese inflation accelerated in January, further pressuring households as prices excluding fresh food rose 3.2 percent on-year, government data showed Friday.

Japan’s inflation surged in January, with consumer prices rising 4% year over year—the highest level since early 2023. This has intensified pressure on the Bank of Japan (BOJ) to tighten its ultra-loose monetary policy.

Core inflation — which excludes prices of fresh food — rose to 3.2% from 3% in the prior month and beat economists' expectations of 3.1%, according to a Reuters poll.