Oil Jump to Stir BOJ’s Worry Over Risk of Inflation Overheating

A policy hold by the Bank of Japan this week is a foregone conclusion for most economists, but the deliberations will still be highly significant as authorities start to mull whether surging oil prices might warrant preemptive action to keep inflation from overheating.

Four straight years of price growth above the BOJ’s 2% target have strengthened perceptions at the bank that bona fide inflation expectations are finally taking root, according to people familiar with the matter.