TD Securities pointed out that as the Bank of Japan's policy shifts in a hawkish direction, the attractiveness of the yen as a financing currency for global arbitrage transactions is expected to gradually decline. TD stated in the report, “The Japanese economy is at a turning point, and the Bank of Japan cannot take the risk of falling behind.” “The Bank of Japan will abandon its' progressive 'monetary tightening stance and adopt a more proactive approach to policy normalization.” The Bank of Japan is expected to raise the policy interest rate by 25 basis points in September and December, and further increase it in April, July, and October 2027, raising the policy interest rate to 2.25%.

TD Securities pointed out that as the Bank of Japan's policy shifts in a hawkish direction, the attractiveness of the yen as a financing currency for global arbitrage transactions is expected to gradually decline. TD stated in the report, “The Japanese economy is at a turning point, and the Bank of Japan cannot take the risk of falling behind.” “The Bank of Japan will abandon its' progressive 'monetary tightening stance and adopt a more proactive approach to policy normalization.” The Bank of Japan is expected to raise the policy interest rate by 25 basis points in September and December, and further increase it in April, July, and October 2027, raising the policy interest rate to 2.25%.