Fed and Bank of Japan may raise rates in the same week
- —The probability of a Fed rate hike rose from ~50% in late August to 92%
- —89% of economists expect the BOJ to raise rates by 25 bps to 1.25%
- —61% of respondents forecast the yen at 155–160 per dollar within a month
- —Synchronized tightening by the Fed, ECB, and BOJ would be the first since 2006
Why it matters: A narrowing US-Japan rate differential would hit carry trades and reduce risk appetite, including for crypto, at the start of Q4.
Source: BeInCrypto DE