Japan's DPP Leader Tamaki says the BoJ should hike rates if SMEs sustain wage growth of around 5%; shouldn't rule out FX intervention if Gov't measures to limit long-term rates lead to weakening JPY

• Government should consider bond buybacks, reducing 40-year JGB issuance, while BoJ slows tapering pace.

The comments from Japan's DPP leader suggest a hawkish tilt towards monetary policy by the BoJ, indicating that sustained wage growth could prompt rate hikes. Additionally, the mention of potential FX intervention reflects concerns over JPY weakness due to government measures impacting long-term rates, which could have broader implications for cross-asset strategies.