In the minutes of October 27-28 meeting, BoJ said “yen had depreciated somewhat significantly against both the U.S. dollar and the euro, mainly due to rises in U.S. and European interest rates”. Members have discussed the impact of the yen’s depreciation.
Some members said, “the depreciation had positively affected Japan’s economy as a whole through an increase in profits from business conducted overseas and a rise in stock prices, although its effect of pushing up exports had declined.”
One member said, “the effect of the depreciation on each economic entity was uneven, depending on industry and size”. Another member noted, “while prices had increased recently, triggered mainly by the yen’s depreciation, it was unlikely at present that heightened inflationary pressure would reduce the economic welfare of Japan as a whole.”
