Japan mission chief for the IMF Salgado:
- we believe yen's recent depreciation as reflecting fundamentals, such as expectations on future US_Japan monetary policies
- we see both positive, negative effects in yen depreciation on Japan's economy
- weak yen helps exporters and firms earning profits overseas, facilitates BOJ's achievement of 2% inflation target
- negative side of weak yen is impact on importers, households
- inflation in the medium-term will remain well below BOJ's target once cost-push factors go away
- appropriate for the BOJ to maintain monetary easing until inflation is achieved in a stable and durable manner
Bank of Japan Governor Kuroda has said pretty the same on the weakening yen:
