BOJ Will Consider Policy Change If Weak Yen Causes Inflation Overshoot, Gov Ueda Says
By Megumi Fujikawa
TOKYO--Bank of Japan would consider a policy response if the yen's weakness causes inflation to rise sharply higher, Gov. Kazuo Ueda said Wednesday.
"If there is a risk that a virtuous cycle of wages and prices strengthens more than expected and underlying inflation rises above 2%, we need to consider changing monetary policy," Ueda said in a parliamentary committee meeting, when asked by an opposition lawmaker whether the bank would act against the yen's fall.
The yen is trading around 151.75 to the dollar on Wednesday, staying near its 34-year low.
Ueda also reiterated the bank would maintain accommodative monetary conditions for the time being because underlying inflation is still below the bank's 2% target.
The central bank decided at its March meeting to end easing policies, including negative interest rates, as the bank has become confident about achieving the inflation target.
Ueda said the bank made the decision to move in March because waiting longer could have caused inflation to overshoot, forcing the BOJ to raise interest rates more aggressively.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
April 09, 2024 23:43 ET (03:43 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Markets Brief: Tech Stocks Lead Ahead of Nvidia Earnings
-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Should You Buy and Hold an Artificial Intelligence Portfolio?
-
3 Cheap and Dependable Dividend-Growth Stocks to Buy
-
The Best Bank Stocks to Buy
-
After Earnings, Is Roblox Stock a Buy, Sell, or Fairly Valued?
-
After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?
-
8 Stock Picks in the Apparel Industry
-
Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?