Morgan Stanley MUFG Securities says Ueda is unlikely to signal a hawkish
surprise beyond what markets have priced at next week’s press conference. The
firm's economists and strategists note OIS markets have largely priced BOJ
policy to 1.25% by year-end. The report cites rising Middle East uncertainty and
recent equity volatility and expects a 25bp policy-rate hike to 1.00% at the
June meeting.
