Japan's Central Bank Set to Raise Rates to 25-Year High as Deputy Governor Takes Chair

According to BlockBeats, Japan's central bank will raise interest rates by 25 basis points to 1% at its key monetary policy meeting next Tuesday (June 18), marking the highest level since 1995. BOJ Governor Ueda Kazuo will miss the meeting and post-decision press conference due to hospitalization, with Deputy Governor Uchida Shinichi taking over communications, raising market concerns over potential shifts in policy guidance.

The U.S. dollar surged above 160 yen, approaching two-year highs and intervention levels, while Japan's core inflation hit 3.5%, a record high. Traders view the central bank's forward guidance on future rate hikes as the critical focus, with dovish signals potentially weakening the yen and hawkish signals helping stabilize currency expectations.