Developments in monetary policy in Japan and the US will be the main focus this week, with the BOJ expected to signal plans for a 25-basis-point rate hike. Attention will also center on the Fed's FOMC meeting and movements in the yen and crude oil prices.
Developments in monetary policy in Japan and the US are expected to be the market's main focus during the week of 14–18 September, with the BOJ signaling plans to raise its policy rate from 1.0% to 1.25%. Expectations of a rate hike have also emerged around the Federal Reserve's FOMC, and remarks by Chair Warsh and BOJ Governor Ueda could influence the markets. Crude oil prices are expected to remain at elevated levels as tensions in the Middle East intensify.
The FOMC is scheduled to meet from the 15th to the 16th, drawing market attention as expectations of an early rate hike resurface. The impact on the yen and the reaction across financial markets are expected to be significant, and developments ahead will be closely watched.