Bank of Japan Gov. Kazuo Ueda said the central bank includes the possible impact of a weak yen on its price forecasts, although the stability of the currency market isn’t one of its mandates.

The remarks, which followed those on Monday highlighting Japan's progress in achieving wages-driven inflation, caused a jump in the yen and Japanese bond yields as markets interpreted them as signalling the chance of a rate hike next month.

Bank of Japan governor Kazuo Ueda gave the clearest hint yet that the central bank’s next monetary policy meeting will involve a live discussion over whether to raise interest rates. Read more at The Business Times.