The Bank of Japan may Shake up Financial Markets Before the Fed’s Rate Decision

Why Bank of Japan may shake up financial markets before Fed’s next interest-rate decision Japan — the world’s last bastion of negative interest rates — appears ready to tighten its monetary policy next Tuesday, raising the potential for a mild to more forceful reaction in financial markets a day ahead of the Federal Reserve’s own policy update. The Bank of Japan is the only major central bank that hasn’t hiked borrowing costs during the current cycle, choosing instead to keep its main policy rate at minus 0.1% since 2016. It’s also relied on yield-curve control for years to ensure monetary policy remains loose, by containing short-…