The Bank of Japan raises interest rates but dares not adopt an "hawkish" stance; Wall Street debates Ueda Kazuo's "rescue currency" plan:



A gradual rate hike path (25bp each time), implying that 1.0% is not the upper limit, possibly reaching 1.0% by mid-2026, relies on wage and inflation data to narrow the US-Japan interest rate differential, enhancing the yen's attractiveness.

Policy guidance emphasizes "not stepping on the brakes, only easing the accelerator," maintaining a dovish tone, avoiding a clear timetable for rate hikes to stabilize market expectations, reducing bond market volatility, and coordinating with verbal interventions in the forex market +, if necessary, joint action with the Ministry of Finance to replace aggressive interventions with rate hike expectations to curb the rapid depreciation of the yen, lowering intervention costs.

Market communication pre-announces rate hikes (such as in Nagoya speeches), guiding market pricing, reducing volatility, and avoiding abrupt policy shifts that could trigger panic selling.
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