Fed and BOJ Rate Hikes Loom in Synchronized Move

The Federal Reserve and Bank of Japan (BOJ) are expected to raise interest rates in a rare simultaneous move. The Fed will announce its decision on Wednesday afternoon, with futures markets pricing an over 80% chance of a quarter point increase.

The BOJ is set to follow two days later on Friday, with economists predicting a 25 basis point hike to 1.25%, a fresh three-decade high. The Trump administration's stance has been seen as a factor in the BOJ's decision-making process, with Takahide Kiuchi, executive economist at Nomura Research Institute, stating 'The Trump administration has effectively checked any potential move by a Takaichi administration to block the Bank of Japan from raising interest rates.'

A survey of 18 economists found 89% expect the BOJ to raise its benchmark rate. However, there is disagreement over the pace, with some predicting a single 50 basis point move instead.