G-7 holds off criticising Japan over yen's drop

Tokyo

JAPAN was let off lightly by its Group of 7 (G-7) partners meeting in Germany last Friday over the sharp and continuing drop in the value of the yen against other key currencies, increasing the possibility that the Bank of Japan (BOJ) will be emboldened to loosen monetary policy further, pushing the yen even lower.

A key development could be the release this Wednesday by the Organisation for Economic Cooperation and Development (OECD) of its latest Economic Outlook on Japan, and whether the Paris-based organisation endorses the need for stronger monetary action by the BOJ.