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BOJ says it will keep Japan's inflation rate at 2%

Japanese Prime Minister Fumio Kishida said on Friday (15th) that the Bank of Japan's monetary policy should aim to maintain Japan's inflation rate at 2%, rather than manipulating the yen exchange rate. He also pointed out that the recent inflation problem in Japan is due to the rise in international oil prices and the price of raw materials, and has nothing to do with the weak yen. As soon as this statement came out, the market realized that the Japanese government or the Bank of Japan would not change monetary policy to support the yen. On the contrary, it is more likely to take advantage of this global outbreak of inflation to solve Japan's long-term deflation problem. Although on Monday, Bank of Japan Governor Haruhiko Kuroda changed his opinion that excessive volatility in the yen would hurt the interests of Japanese companies in an attempt to prevent the yen from falling. But unless the market sees the Bank of Japan to block monetary policy, I believe the market still lacks confidence in holding the yen.
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