Key Facts
• On April 12, 2026, Minister Ryomasa Akazawa discussed yen appreciation-linked Bank of Japan policy on NHK.
• Economist Hideo Kumano proposed a 10–15% yen appreciation to curb broad inflation, including food prices.
• Akazawa said BOJ’s inflation target is near, with very low real interest rates, making such policy an option.
• BOJ’s policy meeting is scheduled for April 27–28, amid volatile exchange and long-term interest rates.
• Akazawa forecasted crude oil prices will not return to $60–70 per barrel soon due to geopolitical risks.
• He emphasized current crude supply is secured, avoiding direct calls for consumption cuts.
• Promoted non-coercive “nudge” methods like eco-driving to encourage energy savings.
Summary
On April 12, 2026, Japan’s Minister of Economy, Trade and Industry Ryomasa Akazawa acknowledged that Bank of Japan financial policies potentially leading to yen appreciation are a viable option to address inflation caused by worsening Iran tensions. Economist Hideo Kumano suggested a 10 to 15 percent yen appreciation to broadly suppress prices, including food. Akazawa noted the BOJ’s inflation target is close and real interest rates remain very low, allowing consideration of such measures while monitoring economic impact. The BOJ’s upcoming April 27–28 meeting is highly anticipated amid volatile currency and bond markets. Akazawa also warned crude oil prices are unlikely to fall back to $60–70 per barrel soon due to risks like mine-laying in the Strait of Hormuz, but assured supply is stable. Instead of direct consumption restrictions, he advocated for voluntary energy-saving initiatives using “nudge” techniques, such as promoting eco-driving, following Western examples.
