MNI BRIEF: BOJ Eyes Policy To Counter Yen Moves - Ueda
The BOJ will look at monetary policy to handle volatlity in the forex market, according to Governor Kazuo Ueda.
Bank of Japan Governor Kazuo Ueda said on Wednesday the BOJ may handle forex volatility with monetary policy, depending on forex movements.
Ueda told lawmakers exchange rates will have a significant impact on the economy and prices and forex movements will have a larger impact on prices than previously noted.
Ueda will closely monitor forex moves with regard to the conduct of monetary policy, he added, noting the impact of the weak yen on the underlying inflation trend has not been as significant so far but it could affect the underlying inflation trend in future.
MNI reported last month the BOJ would act should the weak yen induce greater inflation. (See MNI BOJ WATCH: Ueda Flags Policy Change On Weak Yen-Led Inflation)