Bloomberg.com: News & Commentary: "June 13 (Bloomberg) -- The Bank of Japan will probably leave interest rates unchanged this week, waiting until July to raise borrowing costs from close to zero percent for the first time in almost six years.
Nine of 15 economists expect the bank to increase its key overnight rate as early as July, according to a survey by Bloomberg News. All predicted the bank will keep rates on hold after a two-day meeting ends June 15 so that it can review the quarterly Tankan business confidence survey on July 3.
Japan's zero-rate policy, designed to beat seven years of falling consumer prices, now risks kindling inflation as companies start to pass on higher raw material costs. Bank of Japan Governor Toshihiko Fukui said in a May 31 interview that ``upward pressure on prices will increase'' as the economy heads for its longest postwar expansion. "
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