According to CoinDesk, former Bank of Japan (BOJ) official Makoto Sakurai has indicated that the central bank will likely postpone additional interest rate hikes until next year, prioritizing market stability in the near term. Sakurai, a former board member, stated on Friday that the BOJ could not implement another rate hike for the remainder of the year. He suggested that the next potential rate hike might occur by March 2023.

The BOJ recently raised its key interest rate to approximately 0.25% from a range of zero on July 31, marking the first increase in over a decade. This move signalled the possibility of further rate hikes. The shift away from the zero interest rate policy led to an appreciation of the Japanese yen, which in turn caused an unwinding of the