According to CoinMeta, three members of Bank of America’s Global Research team stated that the Bank of Japan (BOJ) may take the lead in using interest rate hikes as a major tool to stabilize the Japanese yen. They pointed out that in order for foreign exchange interventions to be effective in the long term and to achieve sustained stability of the yen, Japan will ultimately need to adjust its policy mix. Currently, the most likely policy combination is to implement monetary tightening against the backdrop of fiscal expansion. The BOJ may proceed with interest rate hikes on a quarterly basis and end the hiking cycle in July 2027 after raising the benchmark interest rate to 2%. Bank of America’s forecast for the US dollar-to-yen exchange rate at the end of 2026 remains unchanged at 149.