Market Analysis: The Bank of Japan May Raise Interest Rates to Coordinate with Intervention Measures

Golden Ten Data, May 11 – Strategists at Daiwa Securities noted in a research report that the Bank of Japan may raise interest rates in tandem with currency market intervention actions by the Japanese Ministry of Finance in the future. The report pointed out that similar situations occurred when Japan took action in the foreign exchange market in 2022 and 2024. The strategists stated that it is worth watching whether US Treasury Secretary Janet Yellen will mention during her visit to Tokyo this week that the Bank of Japan needs to tighten monetary policy to help stabilize the foreign exchange market. Yellen previously stated that she will meet separately with Japan's Prime Minister Sanae Takaichi and Finance Minister Satsuki Katayama in Tokyo on Tuesday.