The fading shadow of reflationists in the Bank of Japan, and the latest addition to the board of an academic favouring an end to ultra-low interest rates, will likely bring the central bank's thinking closer to global peers taking a more conventional approach on monetary policy.

Concurrently, oil prices dipped, exerting additional pressure on the broader dollar index across Asia. Trump's stern calls on OPEC, particularly Saudi Arabia, to boost production and slash prices are a boon for Asia's vast oil-dependent economies, alleviating some of their financial strain.

Copyright 2025 The Associated Press. All Rights Reserved. A Japanese flag flutters at the Bank of Japan headquarters in Tokyo on July 29, 2022. (AP Photo/Shuji ...

After Trump said he would “demand that interest rates drop immediately,” the 2-year Treasury yield edged lower and stocks ticked up.

Markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen strengthened after a widely expected interest rate hike by the Bank of Japan. Given this reality,

Asian markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen weakened slightly ahead of an expected interest rate hike by the Bank of Japan later in the day.

The Bank of Japan’s message on gradual interest hikes has been clearly received by financial markets, Governor Kazuo Ueda said, adding that more hikes will take place if its economic outlook is realized.

Bank of Japan Governor Kazuo Ueda said on Friday the central bank must maintain loose monetary policy to ensure underlying inflation gradually accelerates toward its 2% target.

Underlying inflation in Japan is still slightly below the central bank’s target of 2%, Bank of Japan Gov. Kazuo Ueda said, underlining that it is in no hurry to raise interest rates.

Consumer inflation in the Tokyo metropolitan area picked up slightly in January, government data showed Friday, supporting the Bank of Japan’s plan to pursue more interest-rate increases.

TOKYO (Reuters) - The fading shadow of reflationists in the Bank of Japan, and the latest addition to the board of an academic favouring an end to ultra-low interest rates, will likely bring the central bank's thinking closer to global peers taking a more conventional approach on monetary policy.

The Bank of Japan made a significant step toward shrinking its massive balance sheet last week, while market watchers were fixated on the biggest interest rate increase from the central bank in 18 years.