Financial Associated Press, May 8 (editor Zhou Ziyi) Bank of Japan Governor Kazuo Ueda said in the Japanese Diet on Wednesday (May 8) that if the trend of the yen has a significant impact on inflation, the central bank may take monetary policy action. Further warning of the recent sharp fall in the yen on the economyZazacasinonodepositbonusThe influence of.

A weak yen affects the economy in a number of ways, including pushing up import costs and affecting demand for goods and services.

Ueda pointed out that while the Bank of Japan will not seek to use monetary policy to directly control the movement of the yen, it will carefully study the huge impact that the trend of the yen may have on the economy and prices.

Currency movements were also one of the topics he discussed during a meeting with Japanese Prime Minister Fumio Kishida on Tuesday, suggesting that the recent fall in the yen has attracted a lot of attention from the Japanese authorities.

Possible policy action

"companies have become more active in setting wages and prices to some extent," Ueda said on Wednesday. Therefore, we need to be aware that the impact of exchange rate fluctuations on inflation is becoming more risky than in the past. "

"Exchange rate movements may have a significant impact on the economy and prices, so the central bank may consider adopting monetary policy to respond," he said. "

Mr Ueda's comments contrasted with his remarks after the BoJ policy meeting last month, when he said the recent fall in the yen had not had a direct impact on trend inflation.

This also led some traders at the time to believe that Ueda's post-meeting comments intensified market expectations that the Bank of Japan would not raise interest rates for some time, thus accelerating the decline of the yen.

Since the beginning of this year, the exchange rate of the yen against the dollar has fallen by about 10%, and so far the trading price is about 155 to the dollar.ZazacasinonodepositbonusIt's 19 yen.

In addition, Masato Kanda, Japan's top currency diplomat, also warned in recent days that Japan may have to act on disorderly and speculative volatility in the foreign exchange market, reinforcing expectations that the Japanese authorities are prepared to intervene again to support the yen.

Kanda said that if the exchange rate can steadily reflect fundamentals, then the government does not need to intervene, "but when excessive or disorderly fluctuations due to speculation make the market unable to function properly, the government may have to take appropriate action." We will, as always, adopt a firm attitude. "

The yen had fallen to a 34-year low after Japanese authorities were expected to intervene for at least two days last week to prop up the yen.

Data from the Bank of Japan suggest that the authorities spent more than 9 trillion yen ($58.4 billion) defending the yen, helping the yen recover from the end of 34 in 160.245 to an one-month high in 151.86.