By Leika Kihara
TOKYO (Reuters) -Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank may take monetary policy action if yen moves have a big impact on inflation, escalating his warning against the economic fallout from the currency’s recent sharp declines.
A weak yen affects the economy in various ways including by pushing up import costs, and affecting demand for goods and services, Ueda said.
While the BOJ won’t seek to directly control yen moves with monetary policy, it will scrutinise the potentially huge impact they could have on the economy and prices, Ueda said.
“Companies’ wage- and…
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