[Citi: Yen Weakness May Lead Bank of Japan to Raise Rates Three Times in 2026] Jin10 News, January 20 – Akira Hoshino, head of Citi's Japan market operations, stated that if the yen continues to weaken, the Bank of Japan may raise interest rates three times this year, effectively doubling the rate level. In an interview, Hoshino mentioned that if the USD/JPY exchange rate surpasses 160, the Bank of Japan might raise the unsecured overnight call rate by 25 basis points to 1% in April. He believes that if the yen remains at a low level, a second rate hike of the same magnitude could occur in July, with the possibility of a third hike before the end of the year. "Simply put, the yen's weakness is driven by negative real interest rates," Hoshino said. "If the (Bank of Japan) wants to reverse the exchange rate trend, it has no choice but to address this issue." Currently, Hoshino expects the yen to fluctuate within a range slightly below 150 to 165 this year.