Japan: The BoJ president, Kazuo Ueda, signaled that the bank "will examine the pros and cons of raising interest rates" at the December meeting — his strongest signal yet of imminent tightening.

The yen strengthened after these comments, and Japanese bond yields rose, with the 2-year JGB reaching 1.01%, the highest since 2008. Ueda basically pre-announced a hike to 0.75%, leading the market to price in about an 80% chance of this move.

With Japanese inflation above 2% for more than three years, several officials advocate ending stimulus and normalizing monetary policy.

Australia: The RBA kept the cash rate at 3.60% in the last meeting of the year. Inflation rose again to 3.2%, above the target, indicating that monetary policy may not be as restrictive as previously thought.

GDP for the 3rd quarter grew by 0.4% (2.1% year-on-year), the fastest pace in two years. With a strong labor market, the bank opted to maintain the rate to contain inflation. Chair Michele Bullock warned that there may be a hike in 2026, but the expectation is for prolonged stability.