Bank of Japan Governor UEDA has been hospitalized and is expected to miss the
June policy meeting and abstain from voting; his views will be issued via
written statement. A deputy governor will chair the meeting and Deputy Governor
Shinichi Uchida will lead the post-meeting press conference. UEDA’s absence is
unlikely to alter odds of a rate hike, but raises market uncertainty over the
clarity of BOJ messaging — a particular concern for bond and FX desks already
trading large U.S.-Japan rate differentials that have pressured the yen. Market
strategists note investors are accustomed to UEDA’s in-person communication
cues, and his absence could complicate interpretation of policy intent and
amplify volatility in fixed income and currency markets.
