The Federal Reserve, the Bank of England, and the Bank of Japan are scheduled to announce interest rate decisions between September 16 and September 18. These meetings occur as global inflation rises due to energy supply chain disruptions caused by the US-Iran conflict, with Brent crude prices reaching $108 per barrel.
Markets anticipate a 25 basis point rate hike from the Federal Reserve on September 16, following higher-than-expected core CPI data for August. Ten-year US Treasury yields are approaching 5%, a level not seen since 2007, compared to 1.5% in 2021.
The Bank of England, which held its rate at 3.75% in July with a 6-3 vote, faces ten-year gilt yields near 5.4%. Inflation in the UK is projected to exceed 3% later in 2026. Chancellor John Healey is currently developing a budget amid fiscal constraints.
The Bank of Japan is expected to increase its policy rate from 1.00% to 1.25% on September 18, marking its second hike in 2026. This move is supported by wage growth in Japan. Rising domestic rates may prompt Japanese investors to sell foreign bonds, increasing pressure on global markets.
The current environment of rising sovereign debt yields impacts mortgage and corporate financing costs. While high real yields typically create headwinds for non-yielding assets, Bitcoin has historically functioned as an inflation hedge during periods of market volatility.
