Institution: The possibility of overly hawkish signals from the Bank of Japan Governor is low

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

Four economists and strategists from the institution stated in a report that the overnight index swap market has largely priced in expectations of the Bank of Japan raising interest rates to 1.25% by the end of the year. Additionally, uncertainties in the Middle East situation have recently increased, and some signs of instability have emerged in the stock market. The report also forecasts that the Bank of Japan may raise the policy rate by 25 basis points to 1.00% at its June meeting. (Jin Shi)