Japan's monetary policy just got interesting. Former Bank of Japan board member Makoto Sakurai signals the central bank could push rates to 1.0% sometime between June and July. That's a significant move in an environment where policymakers have been cautious about tightening.

Here's the catch: as rates approach the ~1.75% neutral level, further increases are likely to slow down. Why? Because there's a ceiling—push too hard and you risk hammering economic growth. The BOJ's balancing act matters more than most realize, especially when you're watching asset classes that react sharply to interest rate expectations. Tighter monetary conditions typically mean tighter liquidity across markets, something traders across all asset classes track closely.