BoJ to include forex fluctuation on economy and prices

In a recent speech, Bank of Japan Governor Kazuo Ueda stated that the central bank will carefully consider exchange rate movements when shaping its economic and inflation outlook.

BoJ to include forex fluctuation on economy and prices

He also noted that the BoJ will factor in the impact of U.S. policies under the next president once Donald Trump reveals more details. The recent surge of the dollar, partly driven by expectations that Trump’s proposed inflationary policies could limit Federal Reserve rate cuts, has put pressure on the yen.

Decisions to be made "meeting by meeting"

Regarding monetary policy, Ueda emphasized that the BoJ would make decisions on a "meeting by meeting" basis, using the latest available information. He also indicated that he would be open to raising interest rates again if the Japanese economy and inflation align with the central bank’s forecasts.