As speculation about coordinated intervention to buy yen intensifies, market expectations are growing that the Bank of Japan could implement an additional rate hike in September. Upside inflation risks have again come into focus, with market reactions in foreign exchange and interest rates drawing attention.
August is a period when market participants' holidays overlap, and speculation over an additional Bank of Japan rate hike is increasing. As the need for coordinated intervention to buy yen is being discussed, expectations are building ahead of the Bank of Japan's September policy decision.
Upside inflation risks have again become the focus of debate, and views are spreading that a shift in the Bank of Japan's monetary policy will affect interest-rate trends and foreign exchange markets.