The Bank of Japan kept interest rates steady on Friday and revised up its assessment on consumption, signaling its confidence a solid economic recovery will allow the central bank to raise interest rates again in coming months.

Japan’s key inflation gauge accelerated in August for a fourth consecutive month, hours before the Bank of Japan is scheduled to wrap up its latest policy decision meeting. Most Read from BloombergAOC Proposes $30 Billion Social Housing AuthorityCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughThe Moonshot Plan to Eliminate Deaths on America’s RoadsNew York City’s Transit System Plans $65.

The Japanese Yen (JPY) edges lower against the US Dollar (USD) following the National Consumer Price Index (CPI) data released on Friday. Traders are now focusing on the Bank of Japan (BoJ) policy decision later in the day, with expectations of keeping its short-term interest rate target between 0.15% and 0.25%.

The Bank of Japan kept interest rates steady on Friday and maintained its view the economy remained on track for a moderate recovery.

Higher inflation expectations have been a key driver of the BOJ’s rate increases this year, as the bank forecast an uptick in inflation and private spending on the back of higher wages. So far, inflation appears to be rising in line with the BOJ’s forecasts.

The Bank of Japan left its short-term policy rate unchanged Friday as it examines how the economy and markets are digesting its most recent interest-rate increase.

The Bank of Japan unanimously maintained its key short-term interest rate at around 0.25% to 0.1% at its September meeting, as expected, after raising it in July. The Nikkei 225 Index

The Bank of Japan left interest rates unchanged on Friday, after a decision to hike them in July pushed the yen sharply higher and fuelled turmoil across world markets.

The decision came as the central bank seeks to wean its economy off the long-held ultra-easy monetary policy and curb the yen's slide against the U.S. dollar.