The Bank of Japan will hold its next meeting on October 27-28

On Wednesday, the IMF's Salgado said that generally a weak yen would be good for the Japanese economy, but it’s worth bearing in mind that parts of it may experience difficulties. Those with a large share of imports could be particularly affected. Earlier, the head of the Bank of Japan expressed a similar point of view.

It’s worth noting that at the moment, Japan is watching the fundamentals noticeably less compared to the beginning of this year.

According to government data, the profits of small companies dropped markedly in the second quarter, while large ones had their biggest profits in nearly 70 years.  It’s reported that the Prime Minister of Japan Fumio Kisida is encouraging businesses to raise employee’s wages, indicating that profits will rise eventually due to the weakening yen.

According to Bloomberg, Salgado is confident that the Bank of Japan is right about the wage claims. He spoke in support of the idea that wage growth must be at least 3% before it’s possible to talk about achieving the goal.