Bank of Japan Governor Kazuo Ueda said that he will formulate monetary policy on the basis of fully considering the risk of rising prices. This statement may further fuel market speculation about a possible rate hike at the policy meeting later this month. After the G20 finance ministers and central bank governors meeting in Asheville, North Carolina, Kazuo Ueda told reporters that the Bank of Japan will have full discussions on monetary policy at the next meeting, just like previous meetings. In response to the market's high expectations of interest rate hikes in September, Kazuo Ueda declined to comment, but he said that the economic data is in line with the central bank's outlook. This key statement suggests that the Bank of Japan is expected to continue to push forward interest rate hikes. This week, US Treasury Secretary Scott Bessent stepped up his appeal to the Bank of Japan to take appropriate policy actions to further raise market expectations for the Bank of Japan's upcoming actions. Since then, Kazuo Ueda made the above remarks. According to overnight index swap data, the probability of interest rate hikes in September is about 99%.

Bank of Japan Governor Kazuo Ueda said that he will formulate monetary policy on the basis of fully considering the risk of rising prices. This statement may further fuel market speculation about a possible rate hike at the policy meeting later this month. After the G20 finance ministers and central bank governors meeting in Asheville, North Carolina, Kazuo Ueda told reporters that the Bank of Japan will have full discussions on monetary policy at the next meeting, just like previous meetings. In response to the market's high expectations of interest rate hikes in September, Kazuo Ueda declined to comment, but he said that the economic data is in line with the central bank's outlook. This key statement suggests that the Bank of Japan is expected to continue to push forward interest rate hikes. This week, US Treasury Secretary Scott Bessent stepped up his appeal to the Bank of Japan to take appropriate policy actions to further raise market expectations for the Bank of Japan's upcoming actions. Since then, Kazuo Ueda made the above remarks. According to overnight index swap data, the probability of interest rate hikes in September is about 99%.