Trump's Election Promise Sparks Market Volatility Amid Hawkish BOJ Comments

Bank of Japan board member Kazuyuki Masu recently signaled that interest rates may need to rise further to reach a neutral level. This comes as producer prices have risen by 7%, which could translate into higher consumer inflation.

Masu cited the strong impact of the weak yen and the rising producer prices as reasons for the potential rate hike. A survey of economists found that nearly all of them, 97%, expect a rate hike to 1.25% as early as September 18.