Expectations for an additional Bank of Japan rate hike this year rose again in financial markets after the extended holiday period. The probability of a back-to-back rate hike in October is approaching 30%, while the probability of an additional hike by December is expected to exceed 90% again.
Expectations for an additional Bank of Japan rate hike this year are rising again in financial markets after the extended holiday period. Market participants are pricing in the possibility of a rate hike, with 2 monetary policy meetings scheduled for the remainder of the year.
Specifically, the probability that the Bank of Japan will deliver a back-to-back rate hike at its October meeting is said to have risen to nearly 30%, while the probability of an additional rate hike by December is also expected to exceed 90%.
The shift has also been influenced by a further rise in expectations of a US rate hike during the holiday period, which has caused market conditions to fluctuate and reinforced expectations of a Bank of Japan rate hike.
The article reports market expectations as of 10 a.m. on the 24th.