Bank of Japan board members discussed how to use estimates on the economy's neutral interest rate to determine further hikes in borrowing costs, with one saying the BOJ's policy rate was still far from that level,

Japans service-sector inflation reached 2.9% year-on-year in December, driven by rising costs in accommodation and transportation, according to Bank of Japan (BOJ) data. While slightly lower than Novembers 3.

Japan's annual wholesale inflation held steady at 3.8 per cent in December on stubbornly high food costs, data showed on Thursday, highlighting persistent price pressures that may prod the central bank to raise interest rates next week.

Bank of Japan board members discussed how the central bank should use estimates on the economy's neutral interest rate in guiding policy, with one saying the BOJ's policy rate was still far from that level,