According to CoinMeta, the Bank of Japan ( BOJ ) discussed accelerating the pace of interest rate hikes at a meeting in July. The meeting summary confirmed and reinforced earlier hawkish interpretations. The meeting explicitly mentioned that the link to the interest rate hike in September was key to this upgrade. If the Bank of Japan's actions are faster than the current market expectations, it will help support the Japanese yen and boost yields on Japanese government bonds. During the meeting, it was noted that the Middle East situation is still part of the inflation story, rather than an independent driving factor. Members pointed out that high fuel costs due to conflicts, weak yen import costs, and demand for artificial intelligence are the three major factors driving potential inflation exceeding targets.