Bank of Japan board member signals need for further rate hikes to control inflation

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Bank of Japan board member signals need for further rate hikes to control inflation

⚡ Markets: Hawkish signal is bullish for the JPY and bearish for Japanese government bonds (JGBs). An end to the yen carry trade could cause repatriation of Japanese capital, creating volatility in global asset markets.USDJPYNikkei 225JGBs

A member of the Bank of Japan's policy board stated that the central bank must continue raising its benchmark interest rate to ensure inflation stabilizes around its 2% target. The comments reinforce market expectations, with swaps pricing a near-certainty of a rate hike at the upcoming September meeting.

West MSM: noneRegional 1Financial press 1Primary source 22 countries

4 sources across the spectrum

RegionalJapan Times — BOJ will keep raising benchmark rate to cap price trend at 2%, board member says

Financial pressFinancial Times — Japan must raise rates, central banker says

Primary sourceBank of Japan — Speech by Board Member MASU in Fukui (Economic Activity, Prices, and Monetary Policy in Japan)

Primary sourceBank of Japan — Economic Activity, Prices, and Monetary Policy in Japan

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