BOJ Rate Hike in September Seen as Increasingly Necessary
Dow Jones
Aug 17
0511 GMT - It seems that it is becoming increasingly apparent that the Bank of Japan will need to be permitted to hike rates at its September meeting, accelerating the path of monetary policy normalization, in order to stymie further pressure ahead, says Mark Dowding of RBC BlueBay Asset Management in a note. "Their hope, in the short term, will be that intervention and the threat of intervention will be enough to contain price action until the next BOJ meeting takes place," he says. Money markets are pricing in a 61.5% probability of a 25-basis-point rate hike by the BOJ at the September meeting, according to LSEG.
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