Institution: Low Possibility of BOJ Governor Issuing Overly Hawkish Signals

Odaily reports that Morgan Stanley MUFG Securities believes the possibility of Bank of Japan Governor Kazuo Ueda issuing overly hawkish signals at his press conference next week is low (i.e., exceeding what the market has already priced in).

Four economists and strategists from the institution noted in a report that overnight indexed swap markets have already largely priced in the expectation of a BOJ rate hike to 1.25% by the end of the year. Additionally, uncertainty surrounding the Middle East situation has recently increased, and stock markets have shown some signs of instability. The report also forecasts that the BOJ may raise its policy rate by 25 basis points to 1.00% at its June meeting. (Jin10)