TechFlow news, on January 20, according to Jinshi Data, Mitsuo Hoshino, Head of Citigroup's Japan market operations, said that if the yen continues to weaken, the Bank of Japan may raise interest rates three times this year, doubling the current rate level. In an interview, Hoshino stated that if the USD/JPY exchange rate breaks through 160, the Bank of Japan could raise the unsecured overnight call rate by 25 basis points to 1% in April. He believes that if the yen remains at low levels, a second rate hike of the same magnitude is possible in July, and even a third hike before year-end cannot be ruled out. "Simply put, the yen's weakness is driven by negative real interest rates," Hoshino said. "If the Bank of Japan wants to reverse the currency trend, it has no choice but to address this issue." Currently, Hoshino expects the yen to trade within a range slightly below 150 to 165 this year.
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