Bank of Japan watchers brought forward their forecast for when they expect the next interest rate hike, after clarity over trade increased with US President Donald Trump announcing deals including one with Japan.

The Bank of Japan revised up its inflation forecasts on Thursday and offered a less gloomy outlook on the economy than three months ago, keeping alive the possibility of a resumption in interest rate hikes this year.

Bank of Japan Governor Kazuo Ueda said Thursday the central bank will continue to pursue interest rate hikes, as uncertainty for the