The Bank of Japan has disclosed plans to increase the number of Policy Board member speeches to 3 ahead of its September meeting, strengthening market expectations for a September rate hike.
The Bank of Japan has scheduled a third speech by a Policy Board member for 10 September, ahead of the monetary policy meeting to be held from 17 to 18 September. This completes the schedule of official speaking opportunities following those of Deputy Governor Himino Ryozo (氷見野良三) and Policy Board member Takata Hajime (高田 創).
The BOJ had already announced on 7 August that Policy Board member Masu Kazuyuki (増一行) would give a speech and hold a press conference on 10 September. The concentrated scheduling is said to be consistent with the pattern seen during past rate-hike cycles, when the BOJ used speeches to signal policy shifts.
Market participants believe the possibility of a September rate hike is increasing against the backdrop of coordinated US intervention and Treasury Secretary Bessent’s hawkish stance. Nomura Securities has said that the likelihood of a September rate hike is extremely high. The possibility of an additional rate hike in December is also being discussed.
The BOJ decided to leave interest rates unchanged at its July meeting, and the current elevated level is 1%. With market attention increasing, some believe the BOJ intends to adjust expectations gradually by bringing forward the timing of its speeches.