ISTANBUL: The Bank of Japan (BoJ) is prepared to raise its policy interest rate if underlying inflation trends align with the bank's expectations, its governor said on Tuesday. During a meeting with business leaders in Osaka, Kazuo Ueda said that with underlying inflation hovering around 2%, there is a diminishing need to further stimulate inflation. 'It will be desirable to bring the policy interest rate closer to the level that is neutral to economic activity and prices,' he said. Highlighting the inherent uncertainties affecting economic conditions, Ueda cautioned that unexpected developments could arise. 'Actual policy needs to be conducted in a timely and appropriate manner while taking account of various uncertainties, rather than based on a fixed schedule set in advance,' he added. Despite significant rate hikes from major banks in the post-pandemic recovery, the BoJ has maintained a cautious stance. The central bank has kept the interest rate at minus 0.1% since 2015 but increased it to 0.1% in March and to 0.25% in July, marking its highest level since late 2008. Source: Anadolu Agency