Former Bank of Japan Official: Conditions for a September Rate Hike Are Now in Place
TechFlow reported on August 25 that, according to Jin10 data, former Bank of Japan official Adachi Seiji noted that the conditions for the BoJ to raise interest rates next month are now met, and the market has already fully priced in this move. He warned that if the central bank fails to hike rates, the yen could once again depreciate sharply.
Adachi Seiji noted that US Treasury Secretary Bessent has repeatedly hinted that the BoJ will be the next to act, emphasizing that the government cannot intervene in the central bank's policy decisions. With strong inflation momentum in Japan, the official projects that following the anticipated rate hike in September, the BoJ will implement further measures in January of next year.
He further indicated that the current rate-hiking cycle is highly likely to persist for an extended period, with interest rates potentially surpassing the market's previously anticipated peak range of 1.25% to 1.5% for this cycle.
