BOJ Signals Rate Hike with September Speaking Events

The Bank of Japan (BOJ) has announced 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.

This move may signal the BOJ's intention to repeat its past practice of giving advance signals of a rate hike in speeches delivered by executives in pre-scheduled events. Takata dissented on the BOJ's decision in July to keep rates steady, instead calling for a hike to 1.25%. Masu and Himino are seen as among hawks in the nine-member board who favour a near-term rate hike.

U.S. Treasury Secretary Scott Bessent has said he expected 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 as investors seek clues on whether the BOJ will raise rates at its next policy meeting on September 17-18.