Bank of Japan (BoJ) Governor Kazuo Ueda declined to comment on recent daily yen fluctuations, saying monetary policy is guided by economic and price data rather than short-term exchange-rate movements. Despite his cautious stance, overnight index swaps and bond markets priced in roughly an 80% probability of a 15-basis-point rate increase at the BoJ’s September policy meeting as of late July. Robust wage growth and inflation remaining above the BoJ’s 2% target are supporting expectations for continued gradual tightening. The central bank has already raised rates twice this year. A September increase would advance Japan’s departure from years of negative interest rates and could affect global bond yields, carry trades and the yen. The next policy decision is scheduled for September 19, while investors are expected to monitor wage and inflation data that could influence the central bank’s path.