Bank of Japan Governor Kazuo Ueda is setting a personal record for the longest silence before a policy meeting, making the rate decision more unpredictable and increasing volatility in financial markets, according to Jinshi Data. The last time Ueda spoke publicly about monetary policy was 38 days ago, and such a long silence is unusual for the central bank governor, who sometimes makes multiple speeches a day.
Ueda is usually one of the most frequent public speakers among the major central bank governors. Ataru Okumura, senior interest rate strategist at Sumitomo Mitsui Nikko Securities, said this was not intentional, but this factor will keep market speculation and expectations alive until the end of the meeting.
Ueda will not speak publicly until after the policy meeting on July 31. The silence is of little help to Bank of Japan watchers at a time when more than 90% of respondents see rate hikes as a risk. Investors have been buying the yen as they bet that interest rates will eventually tilt in Japan’s favor.
