The Bank of Japan kept interest rates steady but warned of the impact rising oil costs from the Middle East conflict could have on underlying inflation, signalling its caution over mounting price pressures.

Two hawkish board members also dissented to the central bank’s projection on how soon inflation may durably hit its target, arguing that the timing could be faster than initially expected.

The BOJ’s decision came in a week crammed with central bank meetings, where policymakers grappled with a policy path muddled by the Middle East oil shock.

The Federal Reserve and Bank of Canada kept rates on hold but struck hawkish tones on Wednesday, mindful of the risk surging oil prices could fan inflation.