Bank of Japan Governor Kazuo Ueda said the turmoil in the Middle East would not preclude an interest rate hike less than two weeks before a closely watched rate-setting meeting. “Even if the (Middle East) situation remains unclear, should it be judged that upside risks to prices outweigh downside risks to economic activity, it will be necessary to thoroughly discuss the pros and cons of raising the policy interest rate,” he said in a speech on June 3. Ueda’s emphasis on inflation concerns led the foreign exchange market to factor in an early rate hike. [...]