It is reported that despite the previous wave of interest rate hikes by major central banks around the world, the Bank of Japan still adheres to its monetary easing policy and interest rates remain near 0%. This has caused the Japanese yen to become one of the worst-performing ma

It is reported that despite the previous wave of interest rate hikes by major central banks around the world, the Bank of Japan still adheres to the monetary easing policy, and interest rates remain near 0%. This has caused the Japanese yen to become one of the worst-performing major currencies this year.

The governor of the Bank of Japan said that the Bank of Japan will continue to maintain its loose policy goals to achieve stable inflation and wage growth in its domestic economy at 2%.

According to expert analysis, the purpose behind the Bank of Japan's maintenance of loose monetary policy is actually to promote the recovery of Japan's domestic economy, which has been sluggish for two decades.

However, as global interest rates continue to rise, the cost of maintaining a loose monetary policy by the Bank of Japan is indeed high.

data shows that since the beginning of this year, the yen has depreciated against the US dollar by as much as 30%, and the decline continues to expand.

Due to the substantial depreciation of the yen exchange rate, Japan has suffered unprecedented capital outflows, and the situation continues to worsen.

There is news that after the end of Japan’s current governor Haruhiko Kuroda, the possibility of the Bank of Japan changing monetary policy is increasing. The Bank of Japan may re-evaluate its strategy in response to the continued depreciation of the yen and capital flight.

Affected by the news, the yen rose slightly for a time. However, the Bank of Japan has not given clear information about the direction of monetary policy. However, Japan said it has taken appropriate countermeasures to avoid large fluctuations in the exchange rate .

Generally speaking, a series of remedial measures taken by the Japanese authorities in the foreign exchange market have played a certain role. However, if the monetary policy still maintains a loose environment, foreign exchange intervention alone will not be able to reverse the depreciation of the yen.

text | Shen Jiahong title | Huang Zixin review | Zeng Yi