BOJ's Ueda Mentions Possible Need for Action over Yen Weakness

Tokyo, May 8 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Wednesday that the central bank may need to take monetary policy action depending on exchange rate fluctuations.

"The BOJ is closely watching the yen's current weak movements for its policy management," Ueda said at a meeting of the Financial Affairs Committee of the House of Representatives.

Ueda pointed to "the need to be aware of the risk of currency fluctuations having a greater impact on prices, compared with the past."

He explained that the weaker yen could lead to an upswing in domestic prices through higher import prices.

At the same parliamentary meeting, Finance Minister Shunichi Suzuki said, "Japanese authorities will keep close eyes on currency market developments and take every possible measure."

[Copyright The Jiji Press, Ltd.]