Ueda and Takaichi Maintain Dialogue with No June Hike Talk
Governor Kazuo Ueda and PM Sanae Takaichi agreed to maintain close policy dialogue. They did not discuss a June rate hike despite rising market expectations.
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Bank of Japan Governor Kazuo Ueda met Prime Minister Sanae Takaichi on May 22, 2023, agreeing to coordinate policy without discussing a June rate hike. Markets price an 80% chance that Japan raises interest rates from 0.75% to 1.0% in June. Political alignment is the final hurdle for the central bank to tighten policy amid rising energy-driven inflation.
