BOJ’s Noguchi: Some big firms are benefiting from a weaker yen

• The likelihood of reaching 2% inflation target is rising
• Main scenario is that future rate hikes are likely to be slow, depends on economic data
• Prolonged yen weakness could have various impacts on wages and prices
• Have to take that into account when deciding monetary policy
• Cannot say whether there will be another rate hike this year

At least he’s being honest when it comes to the headline statement. Many of Japan’s largest firms are exporters and will welcome a weaker currency. The biggest among them is of course Toyota. Besides that, the BOJ can also do with a weaker yen too as they look to boost imported inflation.

This article was written by Justin Low at www.forexlive.com.