Speaking in the Japanese parliament today, Bank of Japan Governor Kazuo Ueda said:
- Monetary policy is aimed at influencing inflation, not the yen rate.
- Foreign exchange movements can have a significant impact on the economy and prices, hence the effect of volatility .Foreign currency may be greater than in the past.
- The Bank of Japan does not seek to directly control foreign exchange rates through monetary policy.
- Foreign exchange movements are among the various factors that affect the economy and prices.
- A weaker yen leads to higher import costs, and has an impact on the economy in other ways such as demand.
- The Bank of Japan may need to respond through monetary policy if this effect on the movements of the yen affects the direction of inflation.
- We expect that the inflation trend will gradually move towards 2%.
- We will adjust monetary policy as appropriate if the inflation trend is heading towards 2% as we expect, or if we see a risk of inflation exceeding our expectations.
And from the time of his talk he and Suzuki the Japanese yen fell even more.
Japanese Finance Minister Suzuki Suzuki said that he has no comment on the intervention in the currency market, and any confirmation of intervention could affect future work.
And that we will take the necessary actions when needed, and I see absolutely no line for the level of foreign exchange that we must defend, we are focusing on volatility.
