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2025-09-12 17:30:27
[Does the weak yen hide a wave of inflation? Choices and new growth prospects under historical coordinates] ⑴ Toyoo Gyokten, former top official of Japan's foreign exchange affairs, pointed out that current interest rates in Japan are far below historical levels, which is undoubtedly a key factor leading to the weakness of the yen. He stressed that if the yen is allowed to weaken for a long time, it may push up inflation through import costs, and the Bank of Japan needs to carefully consider this risk. ⑵ He believes that the yen is still weak from a historical perspective, and there is no fundamental reason to support its continued weakness. He suggested that Japan should embrace the strength of the yen and use it as an opportunity to get rid of its over-reliance on exports and explore new growth models. ⑶ In the face of concerns about the strength of the yen among some export-oriented industries, Toyoo Gyokten observed that market sentiment is very different from the past. In the past, a strong yen was seen as a purely negative factor, but now, people are increasingly aware of the need to take into account the feelings of ordinary consumers, especially in the context of a weak yen that has put pressure on family living costs.
