BOJ’s Ueda: Japan economy recovering moderately, will keep raising rates

Ueda's explicit commitment to keep raising the policy rate marks a shift from the BOJ's long-held caution, and it lands as global markets are still calibrating how much tightening they can absorb. For yen-sensitive trades and carry strategies, the signal matters more than any single move: a BOJ that frames further hikes as its base case changes the calculus for anyone positioned around Japanese rates. The open question is whether underlying inflation actually holds near target as policy tightens, since that gap between expectation and data will determine how far this cycle runs.