A September rate hike from the BOJ may be the minimum needed to prevent another slide in the yen, OCBC said. The Bank of Japan is expected to raise rates in September, with OCBC noting that this move could be crucial for stabilizing the currency. The yen has experienced significant weakness in recent months, prompting calls for more aggressive monetary policy from the BOJ.

OCBC's analysis suggests that while a rate hike would be a positive step, further actions may be necessary to fully address yen depreciation pressures. The financial institution emphasized the importance of timely policy adjustments to prevent additional downward pressure on the Japanese currency. Market participants are closely watching the BOJ's next policy decision for signals on Japan's monetary tightening path.

The yen's decline has raised concerns about import costs and economic stability in Japan.