Bank of Japan: Japan's real interest rates have risen recently, particularly at the long and ultra-long end of the curve.

The Reserve Bank of Australia is expected on Tuesday to deliver its fifth hike this year, raising the cash rate by 25bps to 4.85% — an 18‑year high — with money markets pricing roughly an 80% probability. The decision will include updated economic forecasts; Governor Bullock will hold a press conference one hour after the announcement. AMP economists Diana Mousina and My Bui say inflation remains well above target, has surprised on the upside with no clear sign of easing, and caution that failing to hike could damage RBA credibility and entrench higher inflation expectations. They point to domestic capacity constraints and a global energy shock as key inflation drivers. A hike would leave the RBA notably more hawkish than peers, after the U.S., euro area and Japan central banks recently held rates and the RBNZ paused unexpectedly last week.

Hassett, director of the White House National Economic Council, said the government can still take substantial action even if Democrats control Congress.