T. Rowe Price Fixed Income Department CIO: The Bank of Japan will ultimately raise the benchmark interest rate to 1%

Arif Husain, Chief Investment Officer of the Fixed Income Department at T. Rowe Price, predicts that the Bank of Japan will strive to raise the benchmark interest rate to 1%. He pointed out that wage negotiations provide a rationale for interest rate hikes and tend to flatten the bond yield curve. The market expects the Bank of Japan to raise interest rates twice before the end of the year, with a 25 basis point increase almost certain this Friday. The yield on Japan's benchmark 10-year government bonds has risen to 1.255%, the highest since 2011. Husain also mentioned that if a global shock occurs, the yen could rise to multi-year highs