The post We cannot say that Japan has emerged from deflation appeared on BitcoinEthereumNews.com. Japan Prime Minister Sanae Takaichi said on Wednesday that we cannot say that Japan has emerged from deflation. Takaichi further stated that she hopes for Bank of Japan (BOJ) to conduct policy so that Japan sees sustainable achievement of price target. Key quotes Recent inflation driven by food prices, could hurt the economy.Will work closely with BOJ to ensure Japan sees inflation driven by wages.Hopes for BOJ to conduct policy so that Japan sees sustainable achievement of price target.With the wrong policies, there is a risk Japan can slide back into deflation.And that will then hurt consumption, wage growth, and capex.The government’s job is to create an environment where firms can continues with strong wage hikes. Market reaction As of writing, the USD/JPY pair is up 0.30% on the day at 154.60. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led… The post We cannot say that Japan has emerged from deflation appeared on BitcoinEthereumNews.com. Japan Prime Minister Sanae Takaichi said on Wednesday that we cannot say that Japan has emerged from deflation. Takaichi further stated that she hopes for Bank of Japan (BOJ) to conduct policy so that Japan sees sustainable achievement of price target. Key quotes Recent inflation driven by food prices, could hurt the economy.Will work closely with BOJ to ensure Japan sees inflation driven by wages.Hopes for BOJ to conduct policy so that Japan sees sustainable achievement of price target.With the wrong policies, there is a risk Japan can slide back into deflation.And that will then hurt consumption, wage growth, and capex.The government’s job is to create an environment where firms can continues with strong wage hikes. Market reaction As of writing, the USD/JPY pair is up 0.30% on the day at 154.60. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led…