We certainly consider the impact of the exchange rate on the inflation forecast. However, given the well-established inflationtargeting regime and reduced pass-through, we do not need to react to depreciation too strongly. We can avoid unscheduled MPC meetings and instant rate hikes of hundreds of basis points. But this doesn’t mean that we can ignore depreciation entirely.
1/2  BIS - Central bankers' speeches  Concerning risks to the outlook, there have been extremely high uncertainties for Japan's economy, including the following: developments in overseas economic activity and prices; developments in the situation surrounding Ukraine and in commodity prices; and the course of COVID-19 at home and abroad and its impact.