The Bank of Japan (BOJ) may raise interest rates if sharp falls in the yen boost inflation or the public's perception of future prices move more than expected, board member Seiji Adachi said Wednesday.
While short-term currency moves alone would not trigger a policy shift, the central bank could raise interest rates if excessive yen falls persist and have a big impact on inflation expectations, Adachi said in a speech.
He also said the BOJ must look not just at downside risks to the economy and prices, but upside risks, in guiding policy.