The government will warn of the pain a weak yen may inflict on households in this year's long-term economic policy road map, a draft showed Tuesday, as policymakers grow increasingly concerned about the currency's declines.
The reference to the weak yen's impact will likely keep the Bank of Japan under pressure to raise interest rates or slow its huge bond buying — moves some markets believe could slow the currency's declines.
"Japan's economy continues to recover moderately, though some sectors, notably consumption, are stalling," the draft of this year's long-term road map said. "At present, the pace of wage rises hasn't caught up with that of inflation," it added.