# BOJ may face more pressure to hike rates as weak yen hits consumer spending

> Japan's weak yen, down roughly 10% against the dollar this year, is raising political pressure on the Bank of Japan to hike rates. Households are hurt by higher import costs, and Japan's first-quarter GDP shrank more than expected. Exports also slumped as manufacturers lost the benefit of the weaker currency.

- Date: 2024-05-17 · published 2024-05-17T12:00:00.000Z
- Category: macro · region Japan · magnitude low
- Page: https://feedsoft.ai/events/30504-boj-may-face-more-pressure-to-hike-rates-as-weak-yen-hits-consumer-spending
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

A weak yen raises the yen cost of imported feed grains and meal, squeezing Japanese livestock and feed buyers. Pressure for BOJ tightening could support the yen over time.

## Read by commodity

- USDJPY: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/rates-bonds/boj-may-face-more-pressure-hike-rates-weak-yen-hits-consumer-spending-2024-05-17/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.