Analysis: Trump's Ascendancy May Stimulate the Bank of Japan to Raise Interest Rates Sooner

ChainCatcher news, the former executive director of the Bank of Japan responsible for monetary policy stated that Trump's victory in the U.S. presidential election has increased uncertainty for the Bank of Japan, and if the trend of a weaker yen further expands, it could become a potential catalyst for a rate hike in the near future.

Former Bank of Japan official Kazuo Momma said in an interview on Thursday: "The U.S. election has led to increased uncertainty, not just for the Bank of Japan, but for everyone globally. The only reason the Bank of Japan might consider raising rates early could be a rapid depreciation of the yen."

Momma believes that a yen-to-dollar exchange rate falling to 160 could be a key threshold for policymakers, but the timing of any exchange rate changes will also depend on the level of public discontent.