Mitsubishi UFJ Warns Bank of Japan May Need Larger or Out-of-Cycle Rate Hike

Mitsubishi UFJ said a larger or out-of-cycle Bank of Japan rate hike cannot be ruled out, warning that an expected increase this month may not be enough to prevent further declines in the yen and Japanese government bonds. Bloomberg posted on X, citing Mitsubishi UFJ’s view that the anticipated move this month could prove insufficient to stabilize the currency and bond market. The firm said the risk of additional weakness in the yen and Japanese government bonds remains if policy tightening does not go far enough.