BlackRock: Miscommunication in Japan's central bank policy may bring downside risks to the yen.

Belad Group portfolio manager Rie Shigekawa pointed out that if the Bank of Japan does not provide advance guidance on raising interest rates in June at the next policy meeting, the yen will face depreciation risks. Shigekawa stated that market expectations for a rate hike by the Bank of Japan next week have cooled since the outbreak of the conflict in the Middle East. Therefore, Governor Haruhiko Kuroda needs to send a clear signal and emphasize that the policy committee still intends to start raising rates as early as June, which is crucial. She said, "If the policy signal is not properly released, the yen will undoubtedly come under pressure." However, she also added that the market generally believes that the Bank of Japan will implement the next rate hike in June.