Unlimited Lending May Help Weaken the Yen, BOJ Official Says
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The Bank of Japan’s new unlimited lending program may further weaken the yen by reviving the carry trade after the currency sank to a six-month low last week, a senior central bank official said.
A weaker yen “isn’t our main objective but it’s a common understanding that an accommodative policy eventually leads to the depreciating of one’s own currency,” Executive Director Hideo Hayakawa, 58, the official in charge of overseeing the financial system, said in an interview in Tokyo yesterday.