The recent upward price momentum in Mitsubishi UFJ Financial Group (MUFG) reflects strong investor enthusiasm driven by domestic monetary policy shifts, favorable structural catalysts, and attractive fundamental valuations. A primary driver is the evolving policy stance of the Bank of Japan, which recently raised its benchmark interest rate to 1.25 percent and signaled an accelerated timeline for further normalization. Expectations that Japanese monetary authorities may raise rates on a more regular quarterly cadence toward 2 percent have significantly upgraded the medium-term earnings outlook for Japan’s megabanks. Higher domestic interest rates directly expand MUFG’s net interest margins on its massive domestic deposit base, driving…