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MNI BRIEF: BOJ's Kuroda Says Recent Rapid Weak Yen Undesirable

TOKYO (MNI)

Bank of Japan Governor Haruhiko Kuroda said on Thursday that the recent rapid weak yen is increasing uncertainties and is undesirable.

“As I said repeatedly, it is vital for foreign exchange rates to move in a stable manner reflecting economic and financial fundamentals,” Kuroda told reporters add in the BOJ continues to be in close contact with the government with regard to foreign exchange rate moves, (See: MNI BRIEF: BOJ On Hold And Keeps Policy Forward Guidance)

He also said that the latest Outlook Report does not show the achievement of 2% price target in a stable and sustainable manner and the BOJ needs to maintain easy policy. “The impact of the positive contribution from energy items on consumer prices will likely wane and corporate cost pass-through will likely peak out,” meaning the rise of CPI will weaken in fiscal 2023, (See: MNI BRIEF: BOJ Ups FY22 CPI View To +2.3%, Cuts GDP To +2.4%).

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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