BOJ Gov. Ueda discharged after missing historic rate hike

BOJ Governor Ueda Discharged From Hospital After 10-Day Stay

Bank of Japan Governor Kazuo Ueda was discharged from the hospital on Friday, the central bank announced, ending a hospitalization that forced the 74-year-old to miss a historic rate decision earlier in the week.reuters

Early Recovery

Ueda had been hospitalized since June 9 for treatment of an infected liver cyst and was initially expected to remain for approximately two weeks. His release on Friday — roughly 10 days into his stay — came ahead of that projected timeline. The BOJ said Ueda is expected to return to the office on Tuesday while continuing outpatient treatment for approximately two more weeks.japantimes

A Rate Hike Without Its Architect

Ueda’s absence marked the first time a BOJ governor missed a policy-setting meeting since the central bank adopted its current framework in 1998. During the June 15–16 meeting, Deputy Governor Ryozo Himino presided over the rate review while Deputy Governor Shinichi Uchida conducted the post-meeting press conference.cnbc

The board voted 7-1 to raise the short-term policy rate from 0.75% to 1%, pushing borrowing costs to their highest level since 1995. Ueda had signaled his support for the move before his hospitalization and submitted a written policy statement but did not vote.reuters

Road Ahead

Uchida used the press conference to deliver what Reuters described as a “notably direct warning” that the BOJ risks falling behind inflation, a message that underscored the hawkish tilt among policymakers even in Ueda’s absence. A Reuters survey indicated economists expect a further increase to 1.25% following the June hike.reuters

The BOJ has said Ueda will attend and chair the next policy meeting on July 30–31.reuters