The Governor of the Bank of Japan (BOJ), Ueda, emphasized on Monday the importance of a patient approach to maintaining monetary easing in order to support the Japanese economy amidst cost-push inflation. The ongoing inflation has adversely affected households and firms across the country.
Ueda addressed the varying impacts on sectors and companies of different sizes due to escalating raw material costs and a weakening yen. He suggested that the appropriate policy response to deal with inflation could differ based on what is driving the price increases.
The yen’s weakness, which is currently near its lowest value against the US dollar for this year, has put considerable pressure on Ueda. Despite potential threats of intervention and Ueda’s own remarks, the currency has remained within its narrowest monthly range in more than 18 months.
Ueda reaffirmed his commitment to carefully evaluating the pros and cons of their policy. This balanced approach is designed to ensure that the central bank’s actions effectively bolster Japan’s economy while managing potential risks.
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