The Bank of Japan (BOJ) is contemplating raising interest rates, diverging from the trend of monetary easing seen in other advanced economies. This consideration comes as Japan's core inflation rate, excluding fresh food, has remained above the BOJ's 2% target for 29 months, with a 2.8% year-over-year increase in August. Prime Minister Shigeru Ishiba's recent remarks signaling opposition to rate hikes have surprised financial markets. The BOJ's rate hike plans face additional hurdles due to the yen's volatility, political opposition ahead of the upcoming election, and carry trade risk.