％Japan Government Bond 10Y
JP-10Y
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BOJ likely to hike rates in September, pushing 10Y JGB yield up.
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Market prices in nearly 80% chance of BOJ rate hike in September
MacroDigital Finance
The Bank of Japan is likely to raise interest rates again as soon as its September policy meeting and is considering accelerating the pace of hikes from the current average of about twice a year, amid concerns that price pressures could push inflation above target. Reuters reported, citing three sources familiar with the central bank's thinking, that the next policy meeting on September 17-18, 2026, could be when the Bank of Japan decides to raise rates. The central bank last raised rates in June, taking its policy rate to 1%, the highest in 31 years. Although it held rates steady at its July meeting, the central bank gave its clearest signal yet that it may need to raise rates sooner than expected, after warning that mounting price pressures could push underlying inflation above its 2% target. Financial markets are pricing in a nearly 80% chance that the Bank of Japan will raise rates at its September meeting, and some analysts say an actual hike could open the door to another increase at its December meeting. That would mark a shift from a pace of about two hikes a year to roughly one per quarter, if inflation pressures remain elevated.
BOJ likely to hike rates in September, pushing 10Y JGB yield up.