The Bank of Japan raised interest rates as expected, but the yen weakened after policymakers sounded slightly less hawkish than other major central banks. The increase came only three months after the previous hike, breaking the BOJ’s pattern of raising rates twice a year, although two dovish dissenters favored a less restrictive policy stance. Markets are pricing nearly three more U.S. rate hikes by the middle of next year, similar expectations for Europe and Britain, and another two increases in Japan. BOJ Governor Kazuo Ueda’s news conference will be watched for clues on whether those expectations can be sustained. Australia also has two hikes priced in, despite having the highest rates in the G10, after Reserve Bank of Australia Governor Michele Bullock said some upside inflation risks appeared to be materializing. Saudi Arabia and Yemen’s Iran-backed Houthis exchanged fresh strikes across their border, while Yemenis fled by boat across the Red Sea. Oil prices remained just above $100 a barrel and were up nearly 15% this month as traders hoped new routes to market could limit supply disruption. China privately asked Tehran to restrain the Houthis after Saudi Arabia appealed to Beijing, according to three Iranian sources familiar with the matter. Asian stocks were broadly steady after a positive Wall Street session, as investors welcomed signs that the Federal Reserve was taking inflation more seriously. Friday’s scheduled market drivers include Ueda’s news conference, UK retail sales, U.S. industrial production, and speeches from the Fed’s Bowman and Schmid.