BOJ Prepares for Rate Hike Signals Ahead of September Meeting

The Bank of Japan is gearing up for a series of speaking events 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.

The BOJ's decision to stage these events raises questions about whether the central bank will meet growing market expectations of a rate hike in September. Board members Masu and Himino are seen by markets as among those who favour a near-term rate hike, while Takata dissented on the BOJ's decision in July to keep rates steady.

Last week's joint Japan-U.S. yen intervention and comments from U.S. Treasury Secretary Scott Bessent have all but locked the BOJ into raising rates in September, according to sources. 'Whenever Bessent made comments on Japanese monetary policy, the BOJ followed through with rate hikes,' said Mari Iwashita, executive rates strategist at Nomura Securities.