BOJ Hikes Rate Expectations with Trio of Pre-Meeting Speeches
The Bank of Japan (BOJ) has scheduled another speaking event ahead of its next policy meeting in September. Board member Kazuyuki Masu will deliver a speech and hold a news conference on September 10, adding to two existing similar events featuring hawkish board member Hajime Takata on September 2 and Deputy Governor Ryozo Himino on August 27.
Market expectations are growing for a rate hike in September, with the BOJ giving advance signals of a hike in past speeches delivered by executives. Takata dissented on the BOJ's decision to keep rates steady in July, calling for a hike to 1.25%. Masu and Himino are seen as hawks in the nine-member board who favour a near-term rate hike.
U.S. Treasury Secretary Scott Bessent has said he expects to meet BOJ Governor Kazuo Ueda at a U.S.-hosted G20 finance leaders' meeting to be held on August 31 and September 1. If Ueda were to travel and hold a news briefing after the G20 gathering, that too will draw market attention.
Last week's joint Japan-U.S. yen intervention and comments from Bessent signaling his desire for an early rate hike have all but locked the BOJ into raising rates in September, sources say.