Abbas Keshvani, RBC head of Asia macro strategy, said Japan’s inflation data support expectations the Bank of Japan will raise rates in September. He said the BOJ’s July meeting language was more hawkish and markets now expect a faster tightening, pricing roughly a 20bp September hike. He added the BOJ knows disappointing markets could prompt further yen weakness.

2026-08-21

Abbas Keshvani, RBC head of Asia macro strategy, said Japan’s inflation data support expectations the Bank of Japan will raise rates in September. He said the BOJ’s July meeting language was more hawkish and markets now expect a faster tightening, pricing roughly a 20bp September hike. He added the BOJ knows disappointing markets could prompt further yen weakness.