The U.S. FOMC will meet from 15 September, and expectations that the possibility of holding off on a rate hike will affect the market are emerging. Meanwhile, the Nikkei Average fell by around ¥1,000 last week, drawing attention to market developments this week.
The Nikkei Average fell by around ¥1,000 over the course of last week. The U.S. Federal Open Market Committee (FOMC) will meet this week, with attention focused on whether the Federal Reserve will raise interest rates. President Trump's calls for rate cuts and growing expectations of a rate hike have been cited as factors weighing on the market.
If expectations spread that the FOMC will hold off on a rate hike, some believe the market may question the Federal Reserve's independence. There are also indications that stock prices could fall despite a decision not to raise rates, and some market participants say caution is warranted regarding developments ahead.
In Japan, the Bank of Japan's monetary policy meeting is expected to begin on 17 September. Expectations of a policy rate hike have strengthened, and attention is focused on the domestic market's reaction. Market participants believe downside pressure on stock prices would be limited if events unfold as expected.
Governor Ueda's (植田) stance on future rate hikes is expected to be the market's focus, and market reactions could change depending on his remarks and policy developments. Developments this week will be watched in terms of both U.S.-China developments and Japan's monetary policy.