Japan's wholesale inflation accelerated in October at the fastest annual pace in more than a year as renewed yen falls pushed up import costs for some goods, complicating the central bank's decision on how soon to raise interest rates.

Bank of Japan Debates Timing of Interest Rate Hikes Amid Market Volatility The Bank of Japan (BOJ) remains split on when to raise interest rates, with some policymakers urging caution due to potential market volatility,

The Bank of Japan kept its benchmark interest rate unchanged while sticking to its view that it’s on track to achieve its inflation target, an outlook that points to the possibility of another rate hike in the coming months.

Bank of Japan policymakers were divided on how soon they could raise interest rates with some warning of the risk of renewed market volatility, a summary of opinions at the October policy meeting showed on Monday.

Japan’s central bank also projected inflation would move around its 2% target in the coming years, stressing its resolve to keep raising borrowing costs if the economy sustains a moderate recovery

"When yields rise, Japanese government bonds will definitely become the mainstay of our portfolio,” said Tomoki Arai, head of markets at Bank of Yokohama. "We would like to make an entry with the 10-year yield at around 1.1%.”

The summary of opinions from the BOJ’s October policy meeting on Monday revealed divisions among members on the timing of future interest rate hikes, with some warning of the risk of renewed market volatility.