Mizuho economist Yusuke Matsuo said Bank of Japan Governor UEDA is likely to
reiterate a push for further rate hikes at next week’s press conference, but
that is unlikely to reverse the yen’s weakness. Markets have largely priced in
roughly one hike every six months, limiting the currency impact of repeat
hawkish signals. Matsuo warned that any tone read as dovish could deepen yen
weakness amid broad dollar strength. Markets expect the BOJ to hold its policy
rate at 1% next week to assess the effect of the previous hike.
