Bank of Japan Governor Kazuo Ueda's efforts to lift rock-bottom borrowing costs face fresh challenges as a yen rebound and the new political leadership's preference for loose monetary policy raise the hurdle for rate hikes.

The Bank of Japan indicated it remains on track to consider more interest rate hikes by upgrading its assessments for two regional economies, while also offering little evidence of any need for immediate action.

The Bank of Japan should weigh any additional interest-rate increases carefully in order to avoid the risk of cooling the economy too much, the country’s new economics minister said.

By bno - Tokyo Japan's yen has taken a significant hit, plunging to 147.15 against the US dollar, following dovish comments from Prime Minister Shigeru Ishiba regarding interest rates. In a stark shift from his recent campaign rhetoric,