％Japan Government Bond 10Y
JP-10Y
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BOJ rate hike expectations push yields up.
Impact on stocks 1
Others
Former BOJ board member Kiuchi expects September rate hike, moving up from December
MacroDigital Finance
Takahide Kiuchi, a former Bank of Japan board member, said the BOJ is likely to raise interest rates at its September policy meeting, moving up his forecast from December. In an interview on the 26th, Kiuchi pointed out that given Governor Kazuo Ueda's explanations at the previous meeting and the prominence of hawkish opinions in the "Summary of Opinions," the likelihood of a September hike is high, and that "pressure from the Ishiba administration has weakened," which also supports a rate increase. The BOJ kept its policy rate at around 1.0% at the July meeting, but Governor Ueda expressed caution about upside risks to prices and mentioned the possibility of accelerating the pace of hikes. Kiuchi expects a hike to 1.5% in January next year and 1.75% in October following the September move. In the market, interest rate swaps are pricing in about a 90% chance of a hike to 1.25% in September, with a hike by October almost fully priced in.
BOJ rate hike expectations push yields up.