Views are spreading that coordinated Japanese-U.S. intervention will support a September rate hike by the Bank of Japan, while the possibility of eventually moving above the neutral rate is becoming increasingly realistic. Against this backdrop, it has been reported that the U.S. Treasury Secretary’s urging of a rate hike is raising market expectations.
Views are emerging that coordinated Japanese-U.S. intervention will support a September rate hike by the Bank of Japan. Market participants are closely watching the Bank of Japan’s policy management and external monetary cooperation.
Some observers say it is becoming increasingly realistic that rates could eventually reach levels above the neutral rate. The effect of coordinated intervention has been cited as an upside factor for interest rates.
The U.S. Treasury Secretary’s urging of a rate hike is contributing to rising expectations, and some reports have highlighted the view that the terminal rate could exceed 2%.