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Japan PM says country does not need reflationary policy now

The prime minister said she wants to build market trust through highly transparent communication and reiterated respect for the Bank of Japan’s monetary approach.

Reported · Written up by our desk · Central Banks

Japanese Prime Minister Takaichi Sanae said on Thursday that Japan does not require reflationary policy now, adding that she aims to gain market trust through highly transparent communication, according to FXStreet.

She said Japan respects the Bank of Japan’s monetary approach, noting the BoJ’s policy as a key driver for the yen.

FXStreet also highlighted that the yen is among the most heavily traded currencies, with its value shaped by factors including Japan’s economic performance, the Bank of Japan’s policy, and yield differentials versus the United States.

The outlet added that the BoJ has a currency-control mandate and can intervene in currency markets, though it generally refrains more often due to political concerns with major trading partners.

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