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BOJ must be vigilant to yen's impact on economy, says deputy governor Himino
Bank of Japan Deputy Governor Ryozo Himino said the central bank must be "very vigilant" to the impact the yen's moves could have on the economy, suggesting the currency's weakness will be among factors affecting the timing of its next interest rate hike. However, he said it was inappropriate for central banks to directly target exchange rates in setting monetary policy, as other factors needed to be considered as well. "Exchange-rate fluctuations affect economic activity in various ways. It also affects inflation in a broad-based and sustained way, beyond the direct impact on import prices," Himino said on ... (full story)