TREE NEWS reports: Nomura said the Bank of Japan could raise interest rates at all three meetings through December if yen weakness persists. Yujiro Goto, head of Japan FX strategy, called a 0.25 percentage point hike this month ‘reasonable’ and said October and December could see consecutive hikes if yen slides toward 160.
Nomura: BOJ may hike at all three meetings to Dec in extreme case
This signals that yen pressure is now a decisive input for BOJ policy, not just a side effect. If the bank moves at every meeting, it would compress the carry trade and force a repricing of yen-funded positions globally, hitting leveraged strategies that rely on cheap yen. The key variable is the currency's path toward 160, which would turn a hypothetical into a baseline. Whether the BOJ can sustain that pace without triggering a sharp market reaction is the open question.
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