Bank of Japan governor to resume work next week after early discharge

[TOKYO] Bank of Japan (BOJ) governor Kazuo Ueda was discharged from the hospital on Friday (Jun 19) and plans to return to work on Tuesday, according to the BOJ.

“The governor was discharged from the hospital today and is scheduled to return to work on the 23rd,” the BOJ said on Friday. “For approximately the next two weeks, he is expected to continue carrying out his official duties while undergoing outpatient treatment.”

Ueda, 74, was hospitalised on Jun 9 for treatment of a liver cyst infection and did not attend a policy meeting earlier this week, marking the first such gathering without a governor in attendance since 2010. He had been expected to stay in the hospital for two weeks.

“There had been some concern among market participants, so his discharge should provide a sense of reassurance,” said Toru Suehiro, chief economist at Daiwa Securities.

The governor missed the BOJ’s policy meeting on Tuesday, when the central bank raised interest rates to a 31-year high.

At the policy meeting, the board voted 7-1 to raise the benchmark rate to 1 per cent, the highest since 1995. That move continued the process of normalising policy settings that the governor began in March 2024, when he ended the world’s last negative-rate regime.

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Deputy governor Ryozo Himino presided over the board at the Jun 15 to 16 meeting, while deputy Shinichi Uchida conducted the post-decision press briefing.

The BOJ has made it clear that it plans to keep raising the policy rate in response to economy, inflation and financial conditions. Speaking in parliament on Friday, Himino noted the risk of underlying inflation rising above the bank’s 2 per cent target.

Ueda is expected to attend the next policy meeting at the end of July, according to the BOJ. BLOOMBERG/REUTERS