KYODO reports Kansai Electric Power manually shut down one reactor at the Mihama nuclear power plant.

The Bank of Japan raised its policy rate to 1.25% and signaled further tightening. Japanese investors hold about $2.5 trillion in U.S. equities, bonds and other financial assets—roughly half of a $5 trillion overseas portfolio. Higher domestic rates could draw capital back to Japan, potentially slowing or reversing cash flows that have supported U.S. and global markets. Some analysts say a modest rise may not prompt large repatriation because investors can still buy U.S. tech or higher-yielding foreign bonds; yields abroad remain above Japan. Norihiro Yamaguchi, chief Japan economist at Oxford Economics in Tokyo, said he does not expect large-scale repatriation of U.S. Treasuries unless the Bank of Japan clarifies its intended terminal rate and hiking path.

Aberdeen economist Felix Feather said the Bank of England’s decision to hold rates was unsurprising. The 6-3 vote, he added, was not as close as markets assumed. Since the MPC’s July meeting, rising energy prices have increased inflationary pressure, but to date no additional members have turned hawkish. Feather sees a high likelihood of a rate hike at the November meeting, which will publish a full set of economic forecasts and include a press conference, providing a clearer opportunity to justify a policy shift and marking a natural start to the tightening cycle.