Citigroup's Japan head, Akira Hoshino, indicated that the Bank of Japan (BOJ) might implement three interest rate hikes in 2026 if the yen continues to weaken. Hoshino suggested that should the USD/JPY exchange rate surpass 160, the BOJ could raise the uncollateralized overnight call rate by 25 basis points to 1% in April. Further hikes of similar magnitude could follow in July and potentially by year-end if the yen's weakness persists. Hoshino attributes the yen's depreciation to negative real interest rates, emphasizing that the BOJ must address this to reverse the trend. He anticipates the yen will fluctuate between 150 and 165 against the U.S. dollar throughout the year.