During his speech, Bank of Japan Governor Kuroda expressed an open attitude towards a possible interest rate hike in July, ignoring the market's doubts about the possibility of a rate hike. Prior to this, the Bank of Japan stated that it would take another step towards quantitative tightening by reducing its bond purchases next month. "Reducing bond purchases and raising policy interest rates are two different matters," said Kuroda in response to questions from parliament on Tuesday. "The possibility of raising policy interest rates is high and depends on data and information on the economy, inflation, and financial conditions." Among the Bank of Japan observers surveyed by Bloomberg earlier this month, one third predicted a rate hike in June or July, with a slight majority predicting a reduction in bond purchases on June 14. At the policy meeting last week, the Bank of Japan announced that it will reduce bond purchases, but will not release details until the next meeting on July 31. Kuroda said at a post-policy meeting press conference that the possibility of a rate hike in July "of course" depends on the data, easing pressure on the yen.