Bank of Japan Governor Kazuo Ueda stated that he will formulate monetary policy with a thorough consideration of upside risks to prices, a remark that is likely to intensify market speculation about a possible rate hike at the policy meeting later this month.

Speaking to reporters after the G20 finance ministers and central bank governors meeting in Asheville, North Carolina, Ueda said the BOJ would conduct a full discussion on monetary policy at its next meeting, just as it has at previous sessions.

When asked about the market's strong expectations for a September rate increase, Ueda declined to comment directly. However, he noted that economic data remain consistent with the central bank's outlook, a key phrase suggesting the BOJ is on track to continue its tightening path.

His comments come after U.S. Treasury Secretary Scott Bessent intensified calls this week for the Bank of Japan to take appropriate policy action, further boosting market bets that a move is imminent. Overnight index swaps data now indicate an approximately 99% probability of a rate hike in September.