Bank of Japan to Cut Negative Rate in September, JPMorgan Says

The Bank of Japan will lower its short-term interest rate to -0.3% from -0.1% in September to head off risks posed by an expected Federal Reserve rate cut, JPMorgan Chase & Co. said in a research note.

Fed cuts are now expected in September and December after escalating U.S.-China trade tensions and President Donald Trump’s threat of tariffs on Mexico have raised the risk that global growth will deteriorate, said Hiroshi Ugai, chief Japan economist at JPMorgan.