Who’s in control of Japanese monetary policy? Tokyo or Washington?

Bessent’s intervention could have adverse implications for Japan’s economy, the BOJ’s credibility and tech-heavy stock markets in Asia Fast forward to today, and the chances of an increase have shot up to almost 100 per cent. In fact, expectations have shifted so dramatically that bond markets are pricing in a one percentage point rise in borrowing costs to 2 per cent by the third quarter of 2027. JPMorgan is even more hawkish and expects Japanese interest rates to rise to 2.25 per cent by the end of next year.

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