BoJ Rate Hike Looms as Markets Price in September Move

The Bank of Japan (BoJ) may raise its benchmark interest rate next month, according to Seiji Adachi, a former BoJ board member. This move would validate widespread market speculation and possibly lead to another increase as early as January. As of Monday afternoon in Tokyo, traders assigned an 80% probability of a rate hike when the BoJ delivers its next policy decision on September 18.

Adachi stated that 'The BoJ is pretty much boxed in. Markets have almost fully priced-in a hike.'