Bank of Japan chief Kazuo Ueda said Friday the central bank is watching the impact of a weak yen on inflation, saying that the currency's drop of late is one of the factors accelerating inflation.
Speaking at a press conference after a two-day policy meeting, Ueda said the BOJ would respond appropriately to the yen's moves, adding that it would raise interest rates if inflation accelerates further toward its 2 percent goal.
He said a detailed plan to reduce government bond buying, as decided by the Policy Board on Friday, will be announced after the next meeting in July. The BOJ will consult market participants on the plan.
