Deep潮 TechFlow news, December 17, according to economist Alicia Garcia Herrero's analysis, the persistent weakness of the yen is becoming a decisive factor for the Bank of Japan and the Japanese government to reach an agreement this month to support the long-awaited interest rate hike. Despite concerns over U.S. tariffs and broader geopolitical risks, it has been shown that the Japanese economy is more resilient than expected. Short-term, medium-term, and long-term inflation expectations remain above the Bank of Japan's 2% target, strengthening the case for further policy normalization. Food prices have pushed up the core inflation rate, and the yen's exchange rate against the dollar has continued to weaken around 155, which may exacerbate import inflationary pressures. Alicia Garcia Herrero expects the Bank of Japan to raise the policy interest rate by 25 basis points to 0.75% at the meeting on December 19. Looking ahead, if the yen fails to stabilize after the rate hike and continues to drag down real income, the Japanese government may also accept further tightening of policies, which could open the door for another 25 basis point rate hike early next year. (Golden Ten)