BOJ to keep rates steady, deliver hawkish signal as price pressures mount

TOKYO, July 31 : The Bank of Japan is set to keep interest rates steady on Friday but signal its resolve to continue pushing up borrowing costs, as mounting price pressures from the weak yen and Middle East conflict risk driving underlying inflation above its target.The expected hawkish signals from the BOJ would echo those from other central banks focusing on inflation risks from the Iran war-induced energy shock.Having just hiked in June, the BOJ is widely expected to keep short-term interest rates steady at 1 per cent at a two-day meeting ending on Friday. Hawkish board member Hajime Takata may dissent and propose a hike to 1.25 per cent, some analysts say.The BOJ meeting follows that of the U.S. Federal Reserve on Wednesday, at which the board kept interest rates steady but with three