Institution: The likelihood of the Bank of Japan Governor sending an excessively hawkish signal is low

Golden Ten Data, June 9—Morgan Stanley MUFG Securities believes that it is unlikely Bank of Japan Governor Kazuo Ueda will send an excessively hawkish signal in next week's press conference (that is, beyond what markets have already priced in). In a report, four economists and strategists from the firm pointed out that the overnight index swap market has largely priced in expectations for the Bank of Japan to raise interest rates to 1.25% by the end of this year. In addition, uncertainty in the Middle East has recently increased and there have been some signs of instability in the stock markets. The report also expects the Bank of Japan may raise its policy rate by 25 basis points to 1.00% at the June meeting.