Expectations for an additional BOJ rate hike in September have strengthened in the domestic bond market, with the overnight OIS market pricing in an approximately 80% probability. The BOJ’s accelerating pace of rate hikes is increasing upward pressure on interest rates in financial markets.
In the domestic bond market, expectations for an additional BOJ rate hike in September have risen, with the probability in the overnight interest rate swap market (OIS) believed to have reached approximately 80%. Views are spreading that two rate hikes this year are also coming into consideration.
Amid market developments, views are spreading that upward pressure on interest rates will intensify, particularly on medium-term bonds, while expectations for the terminal policy rate are also being raised.
As the September monetary policy meeting approaches, market-wide moves to price in an accelerating pace of BOJ rate hikes are spreading.
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