Deputy Governor Uchida will stand in for hospitalized Governor Ueda to explain
the Bank of Japan’s latest decisions and future policy direction; markets will
watch Uchida for clues on the rate-hike path and BOJ bond-buying. He faces a
delicate balancing act: signal resolve enough to avoid a sharp yen sell-off
while taking into account Prime Minister Takaichi Sanae’s tilt toward more
supportive monetary policy. Some economists warn that any notable departure from
Ueda’s stance could unsettle markets. Daiwa Research’s chief economist expects
Uchida to draw on his implementation experience to deliver a carefully
considered explanation, particularly on the normalization process.
