The Bank of Japan may face its highest interest rate decision in over 30 years, with concerns over severe fluctuations in the Japanese yen triggered by the appointment of its deputy governor According to BlockBeats, on June 12th, the Bank of Japan will hold a key monetary policy meeting next Tuesday, and the market generally expects a 25 basis point hike to 1%, the highest interest rate level since 1995, marking a further normalization of Japan's monetary policy. However, the uncertainty of this meeting has significantly increased. President Kazuo Ueda is hospitalized due to health reasons and will be absent from the meeting and post meeting press conference. The relevant communication responsibilities will be taken over by Vice President Shinichi Uchida, which has aroused high market attention to changes in policy wording and forward-looking guidance. The current USD/JPY exchange rate has risen above 160, approaching a two-year high and approaching the intervention range. Traders generally believe that, with the market fully taking into account expectations of interest rate hikes, the real key lies in the central bank's stance on the future path of interest rate hikes. Institutional analysis points out that if the Bank of Japan releases a dove like signal, it may further weaken the yen and push up the yield of Japanese treasury bond bonds; On the contrary, if there is a clearer tendency towards tightening, it will help stabilize exchange rate expectations. At the same time, Japan is facing multiple constraints such as rising imported inflation pressure, fluctuations in energy prices, and expectations of fiscal expansion, making the policy path more complex. The latest data shows that Japan's core inflation has risen to a new high of 3.5%. Analysts believe that this meeting is not only a point of interest rate adjustment, but also an important observation window for changes in the policy communication framework of the Bank of Japan. The statement of the deputy governor will directly affect the short-term direction of the yen and the global interest rate market. [Original link]