According to the Bank of Japan, Governor Kazuo Ueda has been hospitalized and is expected to be absent from next week's policy meeting.

The central bank stated on Wednesday: "The Governor is currently hospitalized due to a liver cyst infection. He is expected to be hospitalized for approximately two weeks."

The bank announced that the policy meeting on June 15-16 will be chaired by Deputy Governor Ryozo Himino, while the post-meeting press conference will be led by the other Deputy Governor, Shinichi Uchida.

Markets widely anticipate that the Bank of Japan will raise its policy rate at this meeting to its highest level since 1995. Governor Ueda's absence is unlikely to alter this expectation, as multiple board members have expressed the necessity for a rate hike since the last meeting.

The Bank of Japan indicated that Governor Ueda is expected to attend the next scheduled policy meeting at the end of July. This marks his first absence from a policy meeting since assuming the role of Governor in April 2023 and is the first time the central bank has announced his hospitalization.