0703 GMT - The Bank of Japan's monetary policy is shifting from a stance of cautious normalization after years of ultra-loose policy, to a nimble, proactive response to data and market developments, HSBC's Frederic Neumann says in a note. The BOJ raised rates from early 2024 at a steady, monotonous pace, designed not to rattle markets after years of deflation, the chief Asia economist says. After raising its policy rate only in June, BOJ is expected to do so again later this week to 1.25%. BOJ officials could move yet again in the coming months, he says. As Japan leaves behind its deflation-plagued past, the Japanese yen has shown signs of stabilization and local yields are starting to look attractive, HSBC says.