Bank of Japan official Tamura stated raising rates every few months is important. Another board member said that policy rate could move closer to 2 percent soon. The BOJ also said it is set to watch FX moves that reflect fundamentals. The comments suggest a gradual tightening path.
Investors are watching inflation following bonds and precious metals reacted. Gold slipped to one seven‑month low as the dollar rose on expectations of further Fed tightening. Mortgage rates hovered near 6 percent, reinforcing expectations of higher policy costs. Markets are adjusting to tighter financing conditions.