Governor of the Bank of Japan since 2023, Kazuo Ueda oversees Japan’s monetary policy amid yen weakness and a widening rate gap with the U.S.
The Bank of Japan has signaled a rate hike, with Deputy Governor Shinichi Uchida set to host the briefing as Governor Ueda is hospitalised for treatment of an infected liver cyst. A decision is expected to push the policy rate to 1% next week, the highest in three decades, while Himino presides over the review.
The Bank of Japan has raised its policy rate to 1% from 0.75% in line with expectations, as the yen remains near multi-decade lows amid pressure from the Iran war and higher oil prices. Officials warn of ongoing volatility and potential further action to stabilize markets and inflation.
The yen has weakened to multi-decade lows as US rates remain higher than Japan's. Intervention is being considered, but the long-running carry trade and energy costs keep downward pressure on the currency. Markets are watching potential official action and the broader implications for Japan's economy and global markets.
A coordinated U.S.-Japan intervention in late July has only temporarily strengthened the yen. The currency has given back roughly half the gains from the operation and is trading near ¥159–¥160 to the dollar as of mid-August. Analysts say the yield gap between U.S. and Japanese debt and Japan's domestic policy mix are keeping downward pressure on the yen.