U.S. support for yen increases expectations for September rate rise in Japan

The Bank of Japan might raise rates as early as next month because the United States helped prop up the yen.

“The joint intervention essentially created a situation where Japan owes the U.S. a favor,” said Shintaro Inagaki, an economist at Mizuho Securities. “Because of this, the possibility of a rate hike in September or October is increasingly on the radar.”

Until recently, most analysts projected that the next rate increase would happen in December.