BOJ Debated Weak Yen's Impact On Inflation, April Minutes Show By Reuters | Old North State Wealth News
Connect with us

US News

BOJ debated weak yen’s impact on inflation, April minutes show By Reuters



By Leika Kihara

TOKYO (Reuters) -Bank of Japan policymakers debated the impact a weak yen could have on prices, with some flagging the chance of raising interest rates sooner than expected if inflation overshoots, the minutes of their April policy meeting showed.

A few members of the nine-person board said the central bank must respond with monetary policy if exchange rate moves, which are among the key factors affecting the economy and prices, alter its view on the outlook and risks, the minutes released on Wednesday showed.

The weak-yen boost to inflation may have become bigger and more lasting than in the past, as companies are already keen to hike prices and wages, some members were quoted as saying.

“There are various upside risks to inflation,” such as the fallout from a weak yen, expansionary fiscal policy and a tight labour market, one member said, according to the minutes.

“Currency moves are among key factors affecting the economy and prices. If the economic and price outlook, or the risks, change, the BOJ must respond with monetary policy,” a few members were quoted as saying in the minutes.

At the April meeting, the BOJ kept interest rates around zero and highlighted a growing conviction that inflation was on track to durably hit its 2% target in coming years, signalling its readiness to hike borrowing costs later this year.

Read the full article here

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Copyright © 2022 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.