State Street: Bank of Japan's dovish rate hike, Kazuo Ueda may take a neutral stance

According to Odaily, Masahiko loo, Senior Fixed Income Strategist at State Street Global Advisors, stated that the market may interpret the Bank of Japan's rate hike as dovish, leading to short-term volatility in the yen. However, supported by the Federal Reserve's accommodative policy and Japanese investors increasing their hedge ratios from historical lows, the longer-term target of 135-140 remains unchanged. The focus now shifts to the tone and forward guidance of Bank of Japan Governor Kazuo Ueda's press conference—which is likely to be neutral, suggesting a gradual normalization in 2026-27, without being overly dovish or hawkish. Kazuo Ueda needs to maintain a delicate balance. (Golden Ten Data)