Overview
- Bank of Japan Governor Kazuo Ueda was hospitalized for an infected hepatic cyst and the bank confirmed on June 10 that he will not attend the June 15–16 policy meeting.
- The BOJ said Ueda will send his policy views in writing, will not vote at the meeting, and is expected to remain in hospital for about two weeks.
- Deputy Governor Ryozo Himino will chair the two-day meeting and Deputy Governor Shinichi Uchida will hold the post-meeting press conference, the BOJ said.
- Market sources reported a likely 25 basis point increase that would lift the policy rate to about 1.0 percent but that move was described by sources rather than formally announced by the BOJ.
- Ueda’s absence raises near-term risks for clarity and credibility in BOJ communication and for smooth leadership continuity given Uchida’s recent recovery from leukemia, so markets will watch officials’ statements and yen moves closely.