Some believe the BOJ may rush to raise rates in September to halt yen depreciation. Concerns are emerging that the central bank may be forced to make a major change in the course of monetary policy depending on exchange-rate movements.
Some believe the BOJ may rush to raise rates in September to halt yen depreciation. Concerns are emerging that the central bank may be forced to make a major change in the course of monetary policy depending on exchange-rate movements.
Such decisions have been criticized as carrying risks for policy management, and there is recognition that past policy decisions made against the backdrop of yen depreciation came at a cost.
The article points out that fear of yen depreciation could influence policy decisions and reports that close attention is warranted to the debate over whether to raise rates in September and to developments going forward.