The Bank of Japan needs to accelerate interest rate hikes to support the appreciation of the yen

According to Jinshi reports, T. Rowe Price portfolio manager Vincent Chung stated that the Bank of Japan is expected to maintain interest rates on Friday but may signal a faster pace of rate hikes. He pointed out that if the Bank of Japan accelerates the normalization of its policy, there could be two more rate hikes this year. For the yen to achieve a significant and sustained appreciation, a combination of faster tightening of monetary policy, a decline in energy prices, and more coordinated exchange rate intervention measures is needed.