MNI BRIEF: BOJ April Minutes: Yen Weakness Works Positively

One Bank of Japan board member said that the yen’s depreciation worked positively in the current situation where the output gap and the unemployment gap were still large in absolute terms and underlying inflation was extremely low at the April 27-28 meeting, the minutes released Wednesday showed.

A separate member said the BOJ should also clearly communicate to the public that (1) the effects of the yen's depreciation vary depending on the type of business or economic entity and (2) sharp fluctuations in foreign exchange rates would raise uncertainties about the future,” the minutes showed.

“Some members pointed out that it was necessary for the BOJ to clearly communicate to the public that the aim of monetary policy conduct was to fulfill its mandate of achieving price stability, rather than to control foreign exchange rates.”