Japan finance minister Kato says there are pros and cons to the weak yen

Japan Finance Minister Kato:

• Stated that a weak yen has both merits and demerits.
• Said there is a need to monitor how excessive forex movements will affect corporate activities and households.
• Emphasized that action must be taken if necessary, while monitoring the impacts of forex movements on economic and household activities.
• Indicated that specific policy steps would be left to the Bank of Japan, when asked whether the policy rate should be maintained at 0.25%.
• Expressed hope that the Bank of Japan will communicate thoroughly with markets and take appropriate policy measures to achieve the 2% inflation target in a stable and sustainable manner.

This article was written by Eamonn Sheridan at www.forexlive.com.