BOJ's Ueda warns underlying inflation may overshoot 2% target ahead of rate decision

BOJ Governor Kazuo Ueda reiterated on Friday that underlying inflation risks exceeding the 2% target, signaling potential hawkish tilt ahead of the upcoming policy meeting. The warning suggests the central bank may be preparing markets for further rate hikes, though timing and magnitude remain uncertain. This matters as it could push Japanese yields higher and strengthen the yen, with spillover effects on global carry trades.