BoJ Governor Kazuo Ueda told parliament today that Yen weakness is increasingly feeding into domestic inflation. He noted that as companies have become “more active in raising prices and wages,” the pass-through from higher import costs to consumer inflation has intensified. That dynamic raises the risk that currency-driven price gains could influence inflation expectations and “underlying inflation,” he warned.
Ueda added that the central bank will assess a rate hike at upcoming meetings, with the focus firmly on data that sheds light on next year’s wage momentum. He emphasized said policymakers want to “spend a bit more time to confirm whether firms’ active wage-setting behavior won’t be disrupted,”
He added that the Bank is still gathering information from its nationwide branches and intends to incorporate both official data and its own surveys into the next policy discussions.
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