Japan: BoJ debated yen weakness in April-“minutes”

TOKYO, June 22 (Reuters) – The yen’s rapid decline was a major topic of discussion at the Bank of Japan’s (BoJ) monetary policy meeting in April, with some board members fearing that excessive volatility disrupts business development plans, the minutes of the meeting released on Wednesday show.

A few of the nine board members said the BoJ should communicate to markets that its monetary policy aims to achieve price stability, not control exchange rate movements, according to the “minutes”.

The BoJ should not be interested in commodity prices and currency movements per se, but in the impact they could have on the economy and inflation, some members said.

“A few members said that excessive fluctuations in the foreign exchange market over a short period, such as those seen recently, would create uncertainty about the future and make it more difficult for companies to formulate their development plans,” the account said. -rendering.

Many board members stressed the need to maintain the massive stimulus program put in place by the BoJ, as rising commodity prices, driven in part by Russia’s invasion of Ukraine , weighs on the Japanese economy, dependent on imports, is it added in the “minutes”.

At the April meeting, the BoJ reaffirmed its commitment to keeping interest rates very low by promising to buy an unlimited amount of ten-year government bonds to defend the implied yield ceiling. (Report Leika Kihara; French version Camille Raynaud)

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