[Sources: Bank of Japan Considering Rate Hike in June, with Potential for Further Increases] Odaily Planet Daily reports, according to informed sources, Bank of Japan (BOJ) officials are preparing to consider raising the benchmark interest rate by 25 basis points this month and believe there may be room for further hikes later this year. Sources indicate that the BOJ may discuss raising the policy rate to 1% during the meeting concluding on June 16. Officials also believe that, given real interest rates remain low and inflation faces persistent upward risks, there is potential for additional rate hikes. Due to the high uncertainty surrounding the Middle East situation, officials plan to gather as much data and information as possible before making a final decision, right up until the last moment. They noted that there might be some opposition to the rate hike during the meeting, but it is unlikely to affect the decision. Another key focus of the meeting will be the BOJ's latest plans to scale back bond purchases. According to sources, officials believe there will be no need to maintain the current pace of bond purchase reductions starting from April next year. Sources stated that policymakers think the functionality of Japan's government bond market has improved, so they may consider slowing the pace of reductions or even potentially halting them altogether. (Jin10)