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.

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.

Bank of Japan Deputy Governor Ryozo Himino said on Thursday that the central bank will continue to raise interest rates if the economy and prices move in line with the bank's forecasts.

The BOJ’s first major quantitative tightening step took place in July 2024 when it decided to slash bond buying by ¥400 billion every quarter. The bank estimated the move would shrink its bond holdings by about 7 per cent or 8 per cent through the first three month of 2026.

The deputy governor reiterated that the BOJ would consider additional rate increases if economic and prices developments align with expectations. However, he didn't provide any hints on the timing or pace of future hikes.

U.S. stock indexes ended slightly lower on Wednesday, and tech was the biggest drag on the S&P 500, as the benchmark slipped 0.5%

Australia's export price index rose 3.6%, while its import price index advanced 0.2% in the fourth quarter of 2024.

The Thai government is coordinating efforts to repatriate the remains of a Thai vocational student who was found deceased in Hiroshima, Japan, after being reported missing for nearly a month.

The yen edged up against the dollar and euro amid signs the Bank of Japan will keep raising interest rates as others cut.

Treasury yield fell, and Fed is possibly signaling a more data-dependent, cautious approach rather than committing to a series of cuts, Janus Henderson Investors said.

ASX 200 hits a record high on rate cut speculation, while US stocks retreat after Powell dims rate cut hopes. Nikkei edges up amid AI export concerns.

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