By Leika Kihara TOKYO, Feb 23 (Reuters) - The Bank of Japan may raise interest rates as soon as March if the yen renews its slide ahead of a U.S.-Japan summit expected to be held during the month, former central ‌bank board member Makoto Sakurai told Reuters. Prime Minister Sanae Takaichi is expected to visit Washington for a meeting with U.S. ‌President Donald Trump around the time the BOJ holds its next policy meeting on March 18-19. Takaichi may seek the BOJ's help in keeping yen falls in check, as ...

Geopolitical Tensions - Ongoing Israeli military operations in Southern Lebanon, with airstrikes reported in areas like Marakah, highlight the region's volatility [2][3] - Hezbollah has claimed responsibility for attacks on Israeli towns, indicating entrenched tensions and potential for regional destabilization [3] Japanese Economic Policy - Japanese Prime Minister Sanae Takaichi advocates for the benefits of a weaker yen, supported by the country's substantial foreign reserves [4][5] - The yen has fallen to a 10-month low, trading past 157 to the dollar, with the 160 JPY/USD level identified as a critical threshold for potential government intervention [5][6] Market Reactions - The weaker yen has positively impacted Japanese equities, with benchmarks like the Nikkei 225 and Topix reaching new intraday records, benefiting exporters such as Toyota and Hitachi [6] - Despite the advantages for exports, the weak yen raises concerns about inflation and the real incomes of Japanese citizens, with potential long-term implications for stock performance [7]

Some BOJ board members expressed rising concern over the extent to which the yen’s depreciation is affecting price trends when they discussed policy in December before deciding at that meeting to raise the benchmark interest rate to the highest since 1995 https://t.co/4k8ngnzhxw ...

J P M O R G A N Global Markets Strategy 20 December 2025 In long-term interest rates the 10-year JGB yield rose above 2% following this rate hike, but we see this as a healthy reaction to an appropriate rise in interest rates as the economy normalizes, and we do not expect an adverse stock market reaction. As we note in a separate report, the acceleration of the rise in long-term interest rates seen from mid-November has paused for now, but if the size and content of the initial FY2026 budget due to be deci ...