The Bank of Japan is reportedly working to tackle inflation by boosting the yen, a significant change as the central bank considers raising interest rates to counter the economy’s recent slowdown. An economist on television agreed that a stronger yen would help ease rising energy import costs.
In this regard, Hideo Kumano, chief economist at Dai-ichi Life Research Institute, said in a program on public broadcaster NHK that if the BOJ policy is used to raise the yen by 10% to 15%, it could curb price increases in the economy, the report said. reuters.
“Given the impact on the economy, I think it might be possible to consider things in the direction that Mr. Kumano just mentioned as an option.” It is observed that financial markets are pricing in about a 60% probability that the BOJ will raise interest rates on April 28.
In contrast, BOJ Deputy Governor Ryozo Himino made clear on Friday that the central bank will guide monetary policy by keeping a close eye 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 inflation stagnation.
Ruqiya Shahid is a reporter specializing 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.
