Most Japanese banks risk losses from steep U.S. rate hikes: BOJ

Japan's central bank conducts stress test against forecast 6% fed rate

The U.S. Federal Reserve published in September a projection foreseeing policy rates as high as 6% or more in the next two years. © AP

DAICHI MISHIMA and FUHITO HONDA, Nikkei staff writers

October 22, 2022 04:11 JST

TOKYO -- The majority of big Japanese banks are in danger of reporting losses for the next fiscal year if the U.S. continues to engage in highly aggressive rate hikes, the Bank of Japan warned in a report Friday.

The U.S. Federal Reserve has raised federal fund rates to 3%-3.25%, and the markets expect the central bank to undertake its fourth straight rate increase of 0.75% in next month's policy meeting.