Overview
- Finance Minister Satsuki Katayama said Tokyo will work with overseas counterparts and is ready to take necessary steps as markets swing on Middle East tensions.
- Katayama told parliament the government could compile an extra budget to counter the economic hit from disrupted oil supplies and financial volatility.
- BOJ Deputy Governor Ryozo Himino said the central bank will closely scrutinize currency moves because they can shape inflation expectations and underlying price trends.
- The yen traded near 158 per dollar this week as oil prices climbed and traders assessed the fallout from the Iran-related conflict.
- The BOJ lifted its policy rate to 0.75% in December, and officials have signaled willingness to raise still-low rates further without indicating a timeline.