Japan's Economy Minister Kiuchi says the government has consistently communicated its stance of taking policy that heeds to fiscal sustainability

The effect of the weak yen on local inflation is delayed and not necessarily significant. Wholesale prices are climbing due to recent oil increases, and that consumer inflation rise remains moderate. There is no change to government's stance on monetary policy. Policy tool remains the BoJ's decision. Government will not convey to the BoJ its preference on timing, pace and direction of policy changes. Important for the government and the BoJ to communicate closely and share views on economy, policy and financial developments. FX rates are determined by various factors, which include interest rate differentials, the gap in inflation rate between Japan and other countries, and current account developments. Long-term interest rates are determined by various factors as well, such as inflation, growth expectations and risk premia.