Markets have also focused on a speech by Ueda’s deputy last week that was widely interpreted as suggesting conditions would now justify an increase. The yield on the benchmark 10-year Japanese government bond rose to 1.25 per cent — the highest since April 2011 — in the wake of his comments.

The Bank of Japan has raised its key interest rate to about 0.5% from 0.25%, noting that inflation is holding at a desirable target level