BOJ preps markets for near-term hike as weak yen overshadows politics 

The Bank of Japan is preparing markets for a possible interest rate hike as soon as next month, sources say, reviving previous hawkish language as worries about sharp yen declines return and political pressure for the bank to keep rates low fades. 

Why it matters:  

Having raised rates to 0.5% in January, the BOJ has since kept borrowing costs steady on caution over the economic hit from U.S. tariffs. The slow pace of BOJ rate hikes has been among drivers of a weak yen, which accelerates inflation by pushing up import costs.