Yen slide and rising inflation put BOJ on alert: Why Citigroup warns of up to three rate hikes in 2026

BOJ rate hike 2026: The Bank of Japan may be compelled to increase interest rates multiple times this year due to persistent yen weakness. Citigroup forecasts up to three hikes in 2026, with a dollar above ¥160 potentially triggering an April increase. Negative real interest rates are identified as the primary driver of the yen's decline.