Bank of Japan Expected to Raise Rates 25 Basis Points to 1.00% in June Meeting

According to Morgan Stanley MUFG Securities, the Bank of Japan is expected to raise its policy rate by 25 basis points to 1.00% at its June meeting, the institution's economists and strategists said in a report on June 9. Overnight index swap markets have already largely priced in expectations for the central bank to hike rates to 1.25% by year-end. Bank of Japan Governor Ueda is unlikely to send an unexpectedly hawkish signal at next week's press conference beyond what markets have already absorbed, the report added.
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