Ex-BOJ Governor Pick: Yen Declines Starting to Hurt

The Bank of Japan may need more time to achieve its 2 percent inflation target and the country can’t ignore harm caused by an abrupt weakening of the yen, said Toshiro Muto, a two-time contender to lead the BOJ.

“The hurdle is pretty high to meet the price goal within their targeted time period of about two years,” said Muto, 71, a former deputy governor who is now the chairman of the Daiwa Institute of Research. “It’s a realistic approach to push back the timing.”

Even as the currency’s decline to a six-year low against the dollar swells Japan’s import bill, price gains in the world’s third-largest economy have slowed to 1.1 percent. Companies surveyed by the central bank forecast inflation lower than the BOJ’s goal for the next five years.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.