BoJ Gov Ueda to visit the US from Oct 14th-19th

BoJ Gov Ueda to visit the US from Oct 14th-19th

Bank of Japan (BOJ) Governor Kazuo Ueda is set to visit the United States from October 14th to October 19th, amidst ongoing uncertainty about the global and U.S. economies. His visit comes at a critical time for the BOJ, which is considering its next policy move on interest rates. Ueda's recent speeches have emphasized the central bank's readiness to raise rates further, while cautioning that "considerable uncertainties" remain over downside risks to the U.S. economy .

Ueda's visit to the U.S. coincides with the BOJ's upcoming policy meeting on October 30th, where the timing of the next rate hike will be a key focus. The governor has been vocal about the need to monitor factors such as the global and U.S. economies, the impact of higher U.S. tariffs, and price developments before making a decision. His latest remarks suggest that the central bank is taking a cautious approach, despite improving business confidence among major manufacturers .

The visit also comes at a time when Japan's new Prime Minister, Sanae Takaichi, is expected to take office. Takaichi's victory in the Liberal Democratic Party's presidential election has raised the possibility of a delay in the BOJ's rate hikes. Takaichi has been a vocal advocate of expansionist economic policies and has indicated that her priority would be to reflate demand and the broader economy .

However, some analysts believe that Takaichi's win may not significantly impact the BOJ's plans for moderate tightening. While Takaichi is not seen as supportive of interest rate hikes, the central bank could adopt a more cautious and gradual approach, with the next increase potentially delayed until early next year .

The visit of Governor Ueda to the U.S. is likely to provide insights into the BOJ's stance on monetary policy and its considerations regarding the global economic landscape. The central bank's decisions will continue to be closely watched by investors and financial professionals, as they have significant implications for Japan's economy and the global markets.