Mitsubishi UFJ Asset Management said a larger or out-of-cycle Bank of Japan rate hike can¡¯t 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.
¡°To stop yen weakness, 25 basis points is not enough,¡± said Masayuki Koguchi, executive chief fund manager at Mitsubishi UFJ Asset Management, one of the nation¡¯s biggest investment firms. ¡°If inflation starts to accelerate, there¡¯s a chance that the BOJ could hike by 50 or 75 basis points at one meeting.¡±
¡°The possibility of an out-of-cycle rate hike is also not zero depending on the external environment and fundamentals,¡± he said.
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