TOKYO: While surging global bond yields are hampering the Bank of Japan’s (BoJ) efforts to cap long-term interest rates, a broad US dollar rally is helping the central bank’s new framework achieve what matters most: a weakening yen.
Yen falls help the central bank as it gives Japan’s export-reliant economy a much-needed boost that can spur business investment. It does also make imports costlier, but that could help push inflation towards an ambitious 2% target – a combination the BoJ would welcome as long as households can manage the rising cost of living.
Already a subscriber? Log in
Play, subscribe and stand a chance to win prizes worth over RM39,000! T&C applies.
Cancel anytime. Ad-free. Unlimited access with perks.
