Bank of Japan policymakers started a two-day meeting today.
They are expected to hike rates from 0.75 percent to 1.0 percent.
Governor Kazuo Ueda is missing the session due to a medical condition.
Inflation risks from high oil prices forced their hand.
It would be the first rate increase since December.
The Nikkei index already surged to a record high of 69,317.50.
Japan is trying to balance growth with currency stability.
The absence of the chief leaves the market nervous about future policy.
The era of ultra-cheap Japanese capital is ending.
This hike signals the global retreat from easy money.