BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build 
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FOMC increased interest rates in March and June and increased its forecast from three rate hikes in 2018 to four rate hikes. June decision was unanimous. Current Federal funds rate - 175-200 bps (Note, all calculations are based on data as of 23rd July)
- August 2018 meeting: Market is attaching 95.5 percent probability that rates will be at 1.75-2.00 percent, and 4.5 percent probability that rates will be at 2.00-2.25 percent.
- September 2018 meeting: Market is attaching 10.7 percent probability that rates will be at 1.75-2.00 percent, 85.3 percent probability that rates will be at 2.00-2.25 percent, and 4 percent probability that rates will be at 2.25-2.50 percent.
- November 2018 meeting: Market is attaching 10.1 percent probability that rates will be at 1.75-2.00 percent, 81.4 percent probability that rates will be at 2.00-2.25 percent, and 8.4 percent probability that rates will be at 2.25-2.50 percent.
- December 2018 meeting: Market is attaching 3.7 percent probability that rates will be at 1.75-2.00 percent, 36 percent probability that rates will be at 2.00-2.25 percent, 54.9 percent probability that rates will be at 2.25-2.50 percent, and 5.4 percent probability that rates will be at 2.50-2.75 percent.
- January 2019 meeting: Market is attaching 3.6 percent probability that rates will be at 1.75-2.00 percent, 34.7 percent probability that rates will be at 2.00-2.25 percent, 52.4 percent probability that rates will be at 2.25-2.50 percent, and 8.9 percent probability that rates will be at 2.50-2.75 percent, and 0.5 percent probability that rates will be at 2.75-3.00 percent.
The probability is suggesting,
- Since our last review a week ago, the probabilities have eased for near month and tightened for the far month.
- The market is pricing the third hike for 2018 in September and pricing it with 85.7 percent probability compared to 86.8 percent a week ago.
- The market is pricing the fourth hike in December with 60.3 percent probability instead of 55.6 percent probability just a week ago.
