Markets price in a 25 bps BoJ rate hike to 1.00% with limited reaction to Governor Ueda’s temporary absence.
USD/JPY remains steady around 160.50, just below its late-April high of 160.72, as traders fully price in a 25 bps Bank of Japan rate hike to 1.00%. The move follows expectations of policy continuity despite Governor Kazuo Ueda’s hospitalization and absence from next week’s meeting.
The upcoming BoJ meeting lacks updated economic projections, and a 25bps hike is already factored into markets. Deputies Ryozo Himino and Shinichi Uchida, both aligned with Ueda’s stance, will lead the session and post-meeting press conference.
Yen volatility remains subdued, with traders focused on the pre-priced rate adjustment rather than leadership changes.