TOKYO (Reuters) – Finance Minister Katsunobu Kato said on Wednesday that the government will take appropriate measures to prevent excessive movements in the foreign exchange market, as volatility in the yen is high ahead of an important monetary policy meeting. He reiterated that he would take action.
Kato said at the Japan National Press Club, “As I said before, we are seeing some pretty sharp movements.'' “The government is becoming more cautious about currency fluctuations, including those caused by speculators.”
Asked how a potential interest rate hike by the Bank of Japan would affect the currency, Kato responded to a question about how a potential interest rate hike by the Bank of Japan would affect the currency, after Bank of Japan Deputy Governor Nora Mitsu Himi said on Tuesday that the pros and cons of raising interest rates would be discussed at next week's policy meeting. In response, he made this statement.
Bank of Japan Governor Kazuo Ueda on Wednesday reiterated the bank's plan to discuss the possibility of raising interest rates at its next meeting. Since then, the yen has appreciated by about 0.5% against the US dollar, to 157.225 yen.
Kato said the Ministry of Finance will closely monitor the Bank of Japan's discussions next week.
“We hope that the Bank of Japan will pursue appropriate monetary policy” to sustainably achieve the 2% inflation target, he said.
