Now: Yen becomes a Major Uncertainty
Bank of Japan has concluded its meeting for the June and the following is a few uptakes that need to pay attention to understand the current situation of the Yen. So far, BoJ still hellbent on keeping the ultra-easy monetary policy but at the same time keeping their eyes on the market to prevent the fall of Yen.
According to BoJ, the rising of the goods price are the effect of the rising raw materials cost and the weak Yen, but it is suitable for the current monetary policy. One of the goals of the current policy is to achieve a steady rise in the wages and increase the purchasing power for the households.
The only concern at the moment is that the sharp fall of the Yen will heighten the uncertainty and at the same time the supply constraint caused by the China’s lockdown in which affect the economy sectors to grow.
27 June 2022