Illustration picture of Japanese yen coins and banknotes
By Tetsushi Kajimoto and Leika Kihara
TOKYO (Reuters) -Japan’s top business lobby Keidanren will discuss at next month’s executive meeting the potential negative impact of the yen’s weakness on the economy.
Keidanren, which is comprised of major companies including big automakers and electronics firms, traditionally favoured a weak yen and have called on the government to stave off sharp yen rises that make Japan’s exports less competitive overseas.
Any discussion on the demerits of a weak yen by Keidanren would highlight a shift in how Japan’s business sector views the currency’s movement and its impact on the economy.
The informal executive meeting, to be held on Dec. 4, reflects growing concern by some member companies over those demerits, and will likely affect the lobby’s policy proposals in the future, the Yomiuri said without citing sources.
The shift in Keidanren’s stance could heighten calls by the business sector for the Bank of Japan to end ultra-low interest rates that have been blamed for accelerating the yen’s decline, the newspaper said.
An official at Keidanren confirmed to Reuters that the executives’ meeting will discuss the weak yen as part of a broad range of topics including rising inflation.
(Reporting by Tetsushi Kajimoto and Leika Kihara; Editing by Christopher Cushing and Kim Coghill)
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