Bank of Japan Gov. Toshihiko Fukui fueled speculation Thursday that the central bank will raise the interest rate before the end of the year.
"I do not rule out any timing" for a rate hike, Fukui told a news conference, when asked if the Policy Board would raise the rate at their next meeting, in December.
Fukui said the BOJ will decide when to raise the rate based on improvements in the economy and the movement of prices.
Some analysts are speculating that the good July-September gross domestic product figure, released Tuesday, could encourage the BOJ to hike the rate at the December Policy Board meeting.
In its monthly economic report released earlier in the day, the BOJ said the economy is expanding moderately.
Although private consumption in the latest GDP figures dropped, the BOJ report says private consumption is showing an "increasing trend."
At its Policy Board meeting Thursday, members unanimously agreed to maintain the short-term interest rate at 0.25 percent.