Economists: The Bank of Japan's hasty rate hike may disrupt the investment cycle and weaken the Japanese yen.

French agricultural credit group economist Takuji Aida stated that if concerns about the weakening of the Japanese yen prompt the Bank of Japan to raise interest rates prematurely and the government remains hesitant on strategic investments, the investment cycle in Japan may be disrupted. He said that this situation could lead to Japan falling behind in global industrial policy competition, triggering an uncontrollable depreciation of the yen, and concerns about long-term damage to the country's supply capability will exacerbate this depreciation. He added: "A potential driver of a weaker yen could be the risk of a domestic investment cycle disruption, which is due to a lack of policy coordination, as the Bank of Japan hastily raises interest rates prematurely out of concerns about short-term inflation surges." The latest exchange rate for the US dollar against the Japanese yen is 160.62 yen.