Commenting on the yen, Japan’s top currency diplomat Masato Kanda said a weak yen has its merits and demerits for the economy.
There are both positive and negative effects of a weak yen, it’s hard to say which is bigger.
Weak yen pushed up the import cost of energy and food, increasing household burdens.
The value of a weak yen for exporters isn’t as strong as in the past because they’re not competing on low-cost items on price.
We need to guide policy and understand that the way the exchange rate affects the economy has changed.