BOJ Sees Boost to Inflation from Weak Yen Becoming Larger

FOREX - TOKYO. A weak yen has an increasing impact on Japan's inflation as firms actively pass on rising costs, the central bank said on Monday, signalling its vigilance over mounting price pressures that may warrant more rises in interest rates.

In an analysis of a weak-yen shock, inflation was boosted in the first year from companies passing on rising import costs, the Bank of Japan said. The analysis was contained in the full version of the central bank's quarterly outlook report.