Bank of Japan rate-hike odds rebound on US-China tariff progress

TOKYO -- The recent agreement by the U.S. and China to slash tariffs has revived speculation about the Bank of Japan raising interest rates past 0.5% for the first time in three decades, though caution remains given the uncertain tariff outlook for Japan.

Since ending its negative-rate policy last year, Japan's central bank has lifted its policy rate -- the uncollateralized overnight call rate -- to around 0.5%. Until March or so, a hike past that long-standing ceiling to 0.75% this year had been seen as virtually certain.