Citi sees the potential of 3 rate hikes in 2026 by the BoJ if JPY weakness continues
Citi's commentary suggests that the expectation of three potential rate hikes by the Bank of Japan in 2026 is contingent on the persistence of JPY weakness.
[MARKET UPDATE] KOSPI reverses earlier gains, now down 1.1%, weighed on losses in the tech sector (Samsung -2.3%, SK Hynix -2%)
PBoC is expected to set USD/CNY mid-point at 6.9576 (prev. 7.0051)
Citi sees the potential of 3 rate hikes in 2026 by the BoJ if JPY weakness continues
[MARKET UPDATE] Nikkei 225 opens -0.4% while KOSPI continues to outperform (+0.3%); US equity futures continue to drift lower (ES -1%, NQ -1.3%); JGBs softer ahead of 20-year auction
US President Trump conceded in a weekend phone call with UK PM Starmer that he was given bad information regarding troop deployments from European countries to Greenland, CNN reports citing senior UK official
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This signals a responsiveness to currency depreciation, which could influence inflation targets and subsequently shape monetary policy. Traders should consider the implications for JPY and assets linked to Japan's economic performance, as well as its broader impact on global fixed income and commodities markets.
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