BOJ's Rate Hike Decision Faces Scrutiny Amid Market Turbulence
The Bank of Japan faces challenges after raising interest rates and amid U.S. recession fears. Deputy Governor Shinichi Uchida, known for his expertise in monetary settings, will address these issues in a speech. Governor Kazuo Ueda will also discuss the market situation in a special parliament session.
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The Bank of Japan is grappling with new communication hurdles following its recent interest rate increase, which, along with U.S. recession concerns, has unsettled financial markets and made future rate hikes uncertain. Deputy Governor Shinichi Uchida, a seasoned central banker, will address these issues on Wednesday in Hakodate.
Uchida, known for his intricate understanding of the BOJ's monetary policies, is considered the architect of its current rate hike strategy. In his February speech, he outlined plans to dismantle complex stimulus measures, setting the stage for the BOJ's March decision to end negative interest rates and bond yield controls.
Former BOJ board member Takahide Kiuchi anticipates that Uchida will attempt to calm market nerves regarding the BOJ's rate trajectory amidst the latest market turmoil. Additionally, Governor Kazuo Ueda is expected to participate in a special parliamentary session later this month to address the market's reaction. This session, convened by senior officials from both ruling and opposition parties, aims to shed light on the market implications of the BOJ's recent moves.
(With inputs from agencies.)