Governor Ueda Says BOJ Closely Monitoring Yen's Weakness

   Tokyo, May 8 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Wednesday that the central bank is closely monitoring the yen's current weakness.
   The yen's rapid depreciation is negative for the Japanese economy as it increases uncertainty, including by making it difficult for companies to draw up business plans, Ueda said in a speech in Tokyo.
   "It is necessary to be aware that, compared to the past, exchange rate developments are more likely to affect prices," he said, warning of risks that a weaker yen and higher crude oil prices will keep inflation elevated by pushing up import prices for commodities.
   Ueda said, "The fact that a substantial rise in wages has been achieved for two consecutive years and that firms' outlook for selling prices has increased steadily is an indication of change to the mindset and behavior based on the assumption that wages and prices will not increase easily, which had taken hold in society during deflation."
   "If underlying inflation rises in line with the bank's outlook, the appropriate degree of monetary accommodation from the perspective of achieving the price stability target will change, and the bank will adjust the degree of monetary accommodation," he said.

(2024/05/08-21:52)

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