BOJ Governor Ueda Meets PM Ishiba Ahead of G20

Bank of Japan Governor Kazuo Ueda met with Prime Minister Shigeru Ishiba for a routine discussion on Japan's economic situation and financial markets ahead of the upcoming G7 and G20 meetings in South Africa. This was their first meeting since October, and Ueda characterized the exchange as standard protocol without urgent issues prompting it. They did not discuss the recent rise in long-term interest rates, which have surged to their highest level in over 15 years, fueling speculation about potential future rate hikes by the BOJ. Ueda mentioned that the central bank raised interest rates to 0.5% last month, marking the third increase within a year, with further hikes anticipated if economic conditions support them. Analysts indicate that the rising yields on Japanese government bonds reflect market expectations of a more aggressive rate hike path. The discussions come amid concerns about the impact of U.S. tariff policies under President Trump's administration on Japan's export-reliant economy.