The Bank of Japan is reportedly working to combat inflation by boosting the yen, a significant shift as the central bank weighs raising interest rates to counter the economy’s recent downturn. Regarding an economist on television-agreed that a stronger yen would help mitigate rising energy import costs.
In this connection, Hideo Kumano, chief economist at Dai-ichi Life Research Institute, told a programme on public broadcaster NHK that if BOJ policy were used to boost the yen by 10% to 15%, it could curb price rises across the economy as reported by the Reuters.
“While watching the impact on the economy, I think that considering things in the direction of what Mr. Kumano just mentioned could be possible as one option.” It has been observed that financial markets are pricing in roughly a 60% chance that the BOJ will raise interest rates on April 28.
Conversely, BOJ Deputy Governor Ryozo Himino clarified on Friday that the central bank will guide monetary policy with a close watch on the scale and length of the economic shock caused by the ongoing Middle East war, underscoring the need for vigilance against the risk of inflationary stagnation.
Ruqia Shahid is a reporter specialising in science, focusing on discoveries, research developments, and technological advancements. She translates complex scientific concepts into clear, engaging stories, helping readers understand the latest innovations and their real-world impact through accurate, accessible, and insight-driven reporting.
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