BOJ Officials to Signal Rate Hike Stance Amid Market Bets

Bank of Japan officials will soon have several opportunities to signal their stance on interest rates ahead of the next policy decision on September 18.

The market has been pricing in a roughly 82% probability of a rate hike, more than tripling from about 23% immediately before the BOJ's July policy meeting.

Deputy Governor Ryozo Himino will kick off the series of public appearances on Thursday, followed by Governor Kazuo Ueda's press briefing after a Group of 20 gathering in the US next week.

The yen is another critical factor compelling the BOJ to telegraph its intentions, as there's a risk Japan's currency would fall steeply if the market is betting on a hike and the BOJ decides to hold policy settings.