The Bank of Japan has expanded funding under its climate-friendly lending programme, a move that has reignited debate over how far central banks should steer monetary policy tools toward climate goals. The Bank of Japan has raised the lending ceiling under its programme offering low-interest funding to banks that finance climate-friendly projects. The move extends a green financing toolkit the BOJ has gradually expanded in recent years.

The expansion has reignited an international debate over how far central banks should factor climate goals into their mandate beyond price stability. Some economists argue such programmes blur a central bank's core mission, while supporters say climate risk bears directly on financial stability. BOJ officials stressed the programme aims to encourage low-carbon investment without distorting market mechanisms. Analysts note similar debates are ongoing at the European Central Bank and other major central banks. Read next Australia's Treasurer Chalmers unveils $6 billion improvement to federal budget Australian Treasurer Jim Chalmers has unveiled a $6 billion improvement to the federal government's forecast budget deficit. The revision was attributed to stronger-than-expected tax receipts and lower spending.

Afghanistan says 28 dead fighters came from Pakistan as Islamabad denies ties Afghanistan's defence ministry said its forces killed 28 fighters and wounded 32 in the eastern province of Nuristan, alleging most had travelled from Pakistan. Pakistan's information ministry rejected the claims as baseless. Russia backs India's bid for a permanent seat on UN Security Council Russia reiterated its support for India's long-standing bid to secure a permanent seat on the United Nations Security Council. The statement comes amid an ongoing, years-long debate over reforming the Council's structure. Bangkok flood warnings 'came too late', residents say in worst flood in 15 years Deep floodwaters in Bangkok drove thousands of residents into shelters after days of heavy rain inundated markets, roads and homes. Residents say official warnings came too late, calling it the city's worst flood in 15 years.

Indonesia weighs Chinese investment for 2,772km Kalimantan railway Indonesia is considering Chinese investment to help build a 2,772-kilometer railway network through the resource-rich region of Kalimantan, following the completion of Southeast Asia's first high-speed line between Jakarta and Bandung. Analysts say any deal will likely be negotiated cautiously given the financial strains of the earlier project.