BoJ unlikely to move policy to counter yen weakness

Bank wary of raising rates or increasing its yield control target, writes Sayuri Shirai

Japan stock prices
The BoJ's monetary policy is guided not by the exchange rate, but by price stability

Rising inflation is a global phenomenon, mainly driven by recent sharp hikes in energy prices, food price increases and continuing global supply-chain disruptions related to coronavirus lockdowns. Among developed countries, the United States has one of the highest CPI inflation rates, which stood at around 9% in June 2022. Inflation excluding food and energy recorded 4.7%. These rates far exceed the Federal Reserve’s 2% inflation target.

Meanwhile, Japan’s inflation rate also exceeded 2%, as

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