Bank of Japan: Ueda Signals Hotter Inflation, June Hike

Bank of Japan Governor Ueda delivered the clearest 2026 rate-hike signal yet, stating the central bank now worries more about inflation overheating than economic slowdown, with CPI projected at 2.8% this fiscal year and above 3% later while Producer Price Index hit 4.9% year-on-year in April; wages rising 5% for the third straight year and firm-household expectations climbing higher mean a move from the current 0.75% policy rate to 1% is widely expected at the June 15-16 meeting, a larger step than the 0.15% August 2024 hike that sparked the biggest one-day Japanese equity crash in history and triggered violent selling across global equities, Bitcoin and emerging assets; the $4 trillion global carry trade built on near-zero yen funding now faces faster unwind pressure that historically fuels crypto market crash episodes and forces rapid position closures, directly shaping Bitcoin price prediction models and broader risk-asset flows in the weeks ahead.