Sumitomo Mitsui Banking Corporation: Besides Takada’s view, continuous rate hikes are suggested, and yen depreciation may accelerate the pace of interest rate increases.

1. Hirofumi Suzuki, Chief FX Strategist at Sumitomo Mitsui Banking Corporation in Tokyo, stated that given the Bank of Japan just raised interest rates in June, the decision to maintain rates unchanged this time aligns with market expectations. However, Policy Board member Hajime Takata's proposal for consecutive rate hikes was somewhat unexpected. 2. The central bank has generally revised up its economic growth forecast while lowering its short-term inflation outlook. Suzuki believes these adjustments are unlikely to alter the anticipated path of future rate hikes, and expects the Bank of Japan to continue its gradual normalization of monetary policy. 3. As USD/JPY volatility intensifies, Suzuki pointed out that a new phase is beginning: if the Yen depreciates further, it may prompt the market to price in earlier rate hikes, thereby accelerating the central bank's rate increase pace.