BNP Paribas: Speech by Kazuo Ueda Indicates a Significant Increase in the Probability of a Rate Hike in June

(1) Economists at BNP Paribas stated that remarks by Bank of Japan Governor Kazuo Ueda on Wednesday indicate that the likelihood of a rate hike this month is increasing. (2) Kazuo Ueda pointed out that, given the recent rise in long-term bond yields, it is necessary to ensure market confidence in the central bank's ability to control inflation. The economists believe this highlights a sense of urgency that the central bank may be falling behind the curve. (3) They added that regardless of whether the Middle East situation improves significantly or remains uncertain in the coming weeks, a June rate hike should be considered highly likely.