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.

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Citi sees the potential of 3 rate hikes in 2026 by the BoJ if JPY weakness continues

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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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