Bank of Japan Governor Kazuo Ueda says he has told Prime Minister Fumio Kishida he is closely monitoring the impact of the weak yen on prices, a possible sign of closer coordination as the currency continues to show weakness.
“Overall, exchange rates have the potential to have a major impact on the economy and prices, so I have confirmed that the Bank of Japan will closely monitor the recent weakness of the yen as it implements policy,” Ueda said on Tuesday after his first meeting. with Kishida since March 19, the day the BOJ ended its negative interest rate regime.
The two shared their views on that decision, while also exchanging views on recent currency movements, the economy and financial markets, Ueda said. The period of about seven weeks since their last meeting is unusually short for talks between the governor and the prime minister at the Prime Minister’s Office.
