Institution: The Bank of Japan's interest rate hike represents a shift in policy logic.

Tetsuya Inoue, an economist at Sony Financial Group, stated that the Bank of Japan's decision to cite the risk of rising inflation as a reason for raising interest rates marks a clear shift in their policy logic. This change contrasts sharply with previous rate hikes, when the central bank emphasized adjusting monetary policy to achieve its 2% inflation target in a stable and sustainable manner. Inoue warned that if the central bank falls behind the curve in taking policy actions, it could trigger a sharp increase in long-term bond yields, further weakening the yen and accelerating inflation.