Bank of Japan (BOJ) Governor Kazuo Ueda said on July 25 that the central bank will closely monitor yen fluctuations and their impact on the domestic economy and prices.
The remarks come as the yen continues to experience sharp swings in the foreign exchange market, raising concerns about effects on import costs and inflation in Japan. According to Ueda, the BOJ will review economic data and price developments to make appropriate monetary policy decisions.
The move follows the BOJ's cautious stance on adjusting its ultra-loose monetary policy, as the economy remains in recovery and the 2% inflation target has not been sustainably achieved.
Analysts say Ueda's comments will be closely watched by markets for signals on when the BOJ might change policy, especially amid growing pressure from the yen's depreciation.
