Bank of Japan Governor Kazuo Ueda has been hospitalized and is expected to miss next week’s policy meeting. The bank stated that Ueda is likely to remain in the hospital for approximately two weeks.
The central bank is widely expected to raise interest rates next week to levels unseen in three decades. Specifically, the BOJ is expected to increase its short-term policy rate from 0.75% to 1%.
Governor Ueda's hospitalization is generating uncertainty among investors regarding the central bank’s messaging at the upcoming meeting. Despite this, investors remain convinced that officials will proceed with the interest rate hike.