Japanese yen “would come back to comfort zone” – Abe’s Economic Adviser Honda

FXStreet (Mumbai) - In an interview with the Wall Street Journal today, Etsuro Honda, economic adviser to the nation's PM stated that Japan's central bank should refrain from adding further stimulus at least for some time, pointing to the risks of a too sharp rise in inflation.

Honda stated, "Under these circumstances (cheaper oil), if you undertook additional monetary easing, (the inflation rate) would go even higher," "Is it necessary to do such a thing?"

“(Japanese economy) could overheat over the latter half of this year,"

Therefore, even if price growth decelerates further, "additional easing shouldn’t be undertaken,"

On the country’s exchange rate, Honda noted, "Even if the Japanese yen depreciated more, it would come back to the comfort zone. That’s my guess."