Bank of Japan set to hike rates to 31-year high, drop hawkish signals

The Bank of Japan is expected to raise rates to a 31-year high next week and signal further tightening, despite Governor Ueda's absence. The move underscores rising inflation risks tied to the Middle East war and points to a more hawkish policy stance. The announcement could reverberate across global rates, FX, and risk assets.

Analysis

The Bank of Japan is expected to raise rates to a 31-year high next week and signal further tightening, despite Governor Ueda's absence. The move underscores rising inflation risks tied to the Middle East war and points to a more hawkish policy stance. The announcement could reverberate across global rates, FX, and risk assets.