BOJ to Act If Weak Yen Impact Is Unignorable: Ueda

Tokyo, April 26 (Jiji Press)--Bank of Japan Governor Kazuo Ueda indicated Friday that the central bank will consider raising interest rates if the yen's weakness leads to higher wages and inflation.

If foreign exchange rates have an "unignorable" impact on the underlying inflation rate, this will be a factor in monetary policy decisions, Ueda said at a press conference after the BOJ kept short-term interest rates unchanged at around zero to 0.1 pct.

If a weak yen pushes up inflation and prompts companies to raise pay significantly in next year's "shunto" spring wage talks, this will impact the underlying inflation rate, Ueda said.

"If we are able to anticipate such moves, we'll be able to decide (to raise rates) at an earlier stage before (the next shunto)," he said.

Ueda, however, stressed there is no need for the BOJ to act at this time, saying that the yen's ongoing weakness "has not had a major impact so far."

[Copyright The Jiji Press, Ltd.]