Institutions: Yen depreciation is expected to force verbal intervention, opening the door for the Bank of Japan to raise interest rates.

Analysts at Mitsubishi UFJ Morgan Stanley Securities stated that the Bank of Japan's policy statement reflects its inherent need to intervene verbally to address excessive yen depreciation. In a statement released alongside the interest rate decision, the central bank expressed concern about rising oil prices and pledged to closely monitor the possibility that rising energy costs could accelerate inflation. Analysts suggest that, from the perspective of curbing further yen depreciation, the Bank of Japan may intend to maintain a stance that leaves the door open for further interest rate hikes. (Jinshi)