Mizuho: Bank of Japan Governor's Speech Next Week Unlikely to Reverse Yen Weakness

Mizuho Securities economist Yusuke Matsuo said Bank of Japan Governor Kazuo Ueda is expected to reiterate at next week's news conference that the central bank seeks further rate hikes, but that is unlikely to reverse the yen's weakness. According to Jin10, markets have already largely priced in expectations that the Bank of Japan will raise rates once every six months, so such remarks alone are unlikely to lift the yen sharply. Markets broadly expect the Bank of Japan to keep its policy rate unchanged at 1% next week as it assesses the impact of the last rate hike.