Institutions: Expectations of a Fed rate hike are heating up, and the Bank of Japan may accelerate the pace of interest rate hikes.

BlockBeats news, September 28: Mitsubishi UFJ Morgan Stanley Securities has moved up its forecast for Bank of Japan rate hikes from its previous expectations of January and June 2027 to December 2026 and April 2027.

The brokerage's analysts said in a report: "As market expectations for further Federal Reserve rate hikes heat up, the pace at which the Bank of Japan adjusts the degree of monetary policy support may accelerate somewhat."

The minutes of the Bank of Japan's July meeting released on Monday showed that one policy board member noted that, given underlying inflation is approaching 2% and that more attention should be paid than before to upside price risks, the pace of rate hikes may be faster than market expectations.