BoJ Governor Ueda to Maintain 1% Policy Rate Next Week, But Unlikely to Reverse Yen Weakness

According to Yusuke Matsuo of Mizuho Securities on July 23, Bank of Japan Governor Ueda is expected to reaffirm the central bank's hawkish stance at next week's press conference, though this is unlikely to reverse the yen's weakness. Matsuo noted that markets have largely priced in the BoJ's expected rate hikes every six months, making it difficult for such rhetoric alone to significantly strengthen the yen. Market consensus expects the BoJ to maintain its policy rate at 1% to assess the impact of the previous rate hike.
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