BOJ chief Ueda to skip Jackson Hole, shifts market focus to G20

Bank of Japan Governor Kazuo Ueda will miss the U.S. Federal Reserve’s annual Jackson Hole gathering this week, with Bank of Japan board member Naoki Tamura stepping in to represent him. Ueda's absence is due to scheduling conflicts, and there will be no media opportunity for Tamura during the meeting. This is unusual, as the governor or one of the central bank’s two deputy governors typically attend the Jackson Hole conclave.

Tamura, a former commercial banker, is known for his hawkish stance on the nine-member board and has called for raising interest rates periodically to curb upside risks to prices. The focus will now shift to Tamura's potential appearance at the G20 finance leaders’ gathering in Asheville, North Carolina, where market participants are watching for any clues on whether the central bank might accelerate or adjust the timing of interest rate hikes to tackle rising inflation.

Although the BOJ has not confirmed whether Ueda will attend the G20 meeting, U.S. Treasury Secretary Scott Bessent is eager to meet the BOJ chief in Asheville. This joint U.S.-Japan yen intervention and a hint from Bessent have led markets to nearly fully price in a September BOJ rate hike, following a June hike. Most economists polled by Reuters anticipate the BOJ raising its policy rate to 1.25% from 1% at the September 17-18 meeting.

Deputy Governor Ryozo Himino will also give a speech and hold a news conference on Thursday, potentially signaling the likelihood of a rate hike next month.