Bank of Japan Deputy Governor Uchida to Explain Latest Policy Decision as Governor Ueda Is Hospitalized

Bank of Japan Deputy Governor Shinichi Uchida will step in for Governor Kazuo Ueda, who is hospitalized, to explain the central bank’s latest decision and its future policy direction. According to Jin10, investors are expected to closely watch Uchida’s remarks for clues about his views on the path of future interest rate hikes and the Bank of Japan’s bond-buying policy. The report said Uchida faces a delicate task: he needs to sound sufficiently firm to help prevent a sharp fall in the yen while also taking into account Prime Minister Sanae Takaichi’s preference for an economy-supportive monetary stance. Some economists said that if Uchida deviates from Ueda’s position, it could unsettle the broader situation. Others said Uchida communicates more directly than Ueda, whose style has been described as subtle and even-handed. The chief economist at Daiwa Institute of Research said Uchida is likely to draw on his experience in policy implementation and provide a carefully considered explanation to help market participants better understand the Bank of Japan’s thinking, particularly regarding the normalization process.