"If our economic and price forecasts are achieved, we will raise our policy rate accordingly and adjust the degree of monetary support," Himino said. The BOJ raised interest rates to 0.5% from 0.25% last week on the view that wages will continue rising and keep inflation stable around its 2% target.

The Bank of Japan will likely raise interest rates again around June or July, and seek to triple its policy rate to at least 1.5% in the next two years, former BOJ board member Makoto Sakurai said on Tuesday.

Bank of Japan (BoJ) Deputy Governor Ryozo Himino said on Thursday, the central bank “will raise rates if economy and prices move in line with forecast. BoJ continues to support economy with accommodative monetary environment. Still some distance for Japan to enter world of positive real interest rate.

The central bank is likely to pause a while before bringing the rate up to 0.75%, the highest rate since 1995.

Japanese people are feeling the impact from higher interest rates at a more personal level, according to analysis of social media activity following the central bank’s latest policy decision.