Views are spreading that the market expects the Bank of Japan’s rate-hike pace to accelerate, with markets increasingly pricing in a three-month interval from the previous hike if a rate hike is decided at the September monetary policy meeting.
Financial markets are increasingly expecting the Bank of Japan to accelerate the pace of its rate hikes. If a rate hike is decided at the meeting on 17–18 September, the next hike, approximately three months after the previous one, is considered to be within reach.
In the OIS market, including swap trading, interest-rate developments in transactions between monetary policy meetings are attracting attention, and movements surrounding interest rates for the March 2027 contract have been reported.
Looking ahead, the market is sharing a sense of the schedule focused on March 2027, and pricing related to the Bank of Japan’s rate-hike pace is progressing.
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