The Bank of Japan is expected to decide at its September meeting to raise its policy rate from 1.0% to 1.25%. Markets are focused on expectations of an FRB rate hike and comments from the Bank of Japan governor, while crude oil prices are expected to remain elevated as tensions intensify in the Middle East.
With the actions of the Japanese and U.S. central banks in focus from 14 to 18 September, the Bank of Japan is expected to decide at its meeting to raise its policy rate from the current 1.0% to 1.25%. Market participants are closely watching the move.
Expectations of a rate hike by the U.S. Federal Reserve are also strengthening during the same period, and comments made at press conferences by FRB Chair Warsh and Bank of Japan Governor Ueda Kazuo (植田和男) could have a significant impact on the market.
Crude oil prices are expected to remain elevated against a backdrop of intensifying tensions in the Middle East, and are being watched alongside developments in the foreign exchange and equity markets.