Japanese Manufacturers Urge BOJ to Maintain Yen Stability: Survey Finds
Key Points
- Japanese manufacturers are calling on the Bank of Japan (BOJ) to maintain the stability of the yen.
- A recent survey by the Japan Chamber of Commerce and Industry (JCCI) found that 70% of respondents believe the BOJ should prioritize yen stability.
- The survey also found that 60% of respondents believe the yen’s recent depreciation has had a negative impact on their businesses.
Yen Depreciation Concerns
Japanese manufacturers are increasingly concerned about the yen’s recent depreciation. The yen has fallen by about 20% against the US dollar since the beginning of the year, making it more expensive for Japanese companies to import raw materials and components. This has led to higher costs for manufacturers and has eroded their profits.
The JCCI survey found that 60% of respondents believe the yen’s recent depreciation has had a negative impact on their businesses. The survey also found that 70% of respondents believe the BOJ should prioritize yen stability.
BOJ Policy Outlook
The BOJ has been under pressure to raise interest rates in order to curb inflation. However, the BOJ has been reluctant to raise rates too quickly, as this could further weaken the yen. The BOJ is therefore caught between a rock and a hard place. If it raises rates too quickly, it could hurt the economy. But if it does not raise rates enough, it could lead to higher inflation.
The BOJ is expected to make a decision on interest rates at its next policy meeting on March 10. It is widely expected that the BOJ will keep rates on hold at this meeting. However, the BOJ’s decision will be closely watched by markets. If the BOJ does not signal that it is willing to raise rates in the future, the yen could weaken further.
Conclusion
Japanese manufacturers are calling on the BOJ to maintain the stability of the yen. The BOJ is expected to make a decision on interest rates at its next policy meeting on March 10. It is widely expected that the BOJ will keep rates on hold at this meeting. However, the BOJ’s decision will be closely watched by markets.
Kind regards E. Thompson.
