The government will warn of the pain a weak yen could inflict on households in this year’s long-term economic policy roadmap, a draft showed on Tuesday, as policymakers grow increasingly concerned about the currency’s declines.
The reference to the impact of the weak yen is likely to keep pressure on the Bank of Japan to raise rates or slow its massive bond buying – moves that some markets think could slow the currency’s decline.
“Japan’s economy continues to recover moderately, although some sectors, especially consumption, are stagnating,” the draft long-term roadmap said. “Currently, the pace of wage increases has not caught up with inflation,” it added.