Riksbank minutes: the governor said economic signals indicate high energy costs may intensify due to war and weather-related disruptions, raising broader inflation risks. The risk that escalation could trigger sharp price rises makes a rate hike within the year a reasonable prospect.

Al Jazeera reported Pakistan's army chief Munir has left Tehran. His messaging may no longer fully align with shifts in Iran's domestic politics after Iran's Supreme National Security Council appointed former IRGC commander Mohsen Rezaee as secretary on Aug. 9, replacing Mohammad Bagher Zolghadr; the negotiation environment has become more complex and talks remain stalled.

A former Bank of Japan official said the BOJ is likely to raise rates next month (September) and that markets have essentially fully priced a hike; failure to tighten could trigger another sharp yen selloff. He cited U.S. Treasury official BESSENT’s view that policy action should follow any FX intervention and BESSENT’s hope that governor UEDA will lift rates, adding that BESSENT has repeatedly signalled the BOJ may be next to act and that the government cannot tell the BOJ not to. He said Japan’s inflation momentum is strong and, after an expected September increase, the BOJ is likely to continue tightening—potentially acting again in January and extending the cycle beyond previously assumed terminal rates of 1.25–1.5%.