BOJ board members to signal September rate hike in pre-meeting speeches
BOJ board members will deliver speeches before the September policy meeting, widely expected to result in a rate hike.
The Bank of Japan has scheduled a series of speeches by its board members in the weeks leading up to its next policy meeting on September 17-18, a gathering that market participants widely expect to conclude with an interest rate increase.
Board member Kazuyuki Masu is slated to deliver a speech and hold a press conference on September 10, according to an announcement from the central bank on Friday. He will be preceded by Deputy Governor Ryozo Himino, who speaks on August 27, and board member Hajime Takata, who is scheduled to address the public on September 2.
The speaking schedule follows a period of intense pressure on the yen, which slid to 40-year lows earlier this year. The currency's weakness has been attributed to the wide interest rate differential between Japan and the United States, a gap that critics say the BOJ's gradual tightening pace has failed to narrow.
The central bank ended its decade-long massive stimulus program in 2024 and has raised rates several times since, including in June when it lifted its policy rate to 1%, the highest level in 31 years.
Recent developments appear to have strengthened the case for another hike. Last week's coordinated Japan-U.S. intervention in the currency market, along with comments from U.S. Treasury Secretary Scott Bessent expressing a desire for an early rate increase, have all but locked the BOJ into raising rates in September, according to sources familiar with the matter.
The BOJ has historically used pre-scheduled speeches by its executives to signal upcoming policy moves, a practice that has preceded each of its previous rate hikes. The upcoming addresses by Masu, Himino and Takata are expected to serve a similar purpose, offering the central bank an opportunity to prepare markets for its decision.