- IMF’s Salgado: Weak yen helps BOJ inflation target while it negatively impacts households
Market news
9 June 2022
IMF’s Salgado: Weak yen helps BOJ inflation target while it negatively impacts households
International Monetary Fund’s (IMF) Japan mission chief, Ranil Salgado, offered his view on the merits and demerits of the ongoing depreciation of the yen.
Key quotes
We believe yen's recent depreciation as reflecting fundamentals, such as expectations on future US-Japan monetary policies
We see both positive, negative effects in yen depreciation on Japan's economy.
Weak yen helps exporters and firms earning profits overseas, facilitates BOJ's achievement of 2% inflation target.
Negative side of weak yen is impact on importers, households.
Inflation in the medium-term will remain well below BOJ's target once cost-push factors go away.
Appropriate for the BOJ to maintain monetary easing until inflation is achieved in a stable and durable manner.
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