Reported 4 months ago
Bank of Japan board member Seiji Adachi hinted at a potential interest rate hike if significant drops in the yen lead to higher inflation or impact public perceptions of future prices more than expected. Adachi stated that while short-term currency fluctuations alone would not prompt a policy change, persistent yen depreciation affecting inflation expectations could prompt a rate increase. He emphasized the importance of balancing economic risks and gradually adjusting monetary support based on economic, price, and financial developments, suggesting the possibility of a near-term rate hike. Adachi's remarks come as the yen weakened against the dollar, with the potential for a rate hike as early as July.
Source: YAHOO