Photo/Illutration Bank of Japan Governor Kazuo Ueda, left, and Finance Minister Shunichi Suzuki, center, speak to reporters April 18 in Washington following a meeting of the Group of 20 finance ministers and central bank governors. (Tetsuya Kasai)

WASHINGTON--The governor of the Bank of Japan suggested a further interest rate hike may be in the cards if the weak yen continues to inflict misery through higher prices for foodstuffs and other goods.

Kazuo Ueda, alluding to the fact that many households in Japan are struggling, said the yen’s depreciation could cause “a significant impact that cannot be ignored.”

In that case, a change in monetary policy may be the only course, Ueda added.

He was speaking during a news conference here April 18 following a meeting of the Group of 20 finance ministers and central bank governors.

Ueda also cited the rising costs of imported goods due to the weakening of the currency.

He said the BOJ will evaluate the impact of the yen’s depreciation since January at the central bank’s monetary policy meeting on April 25 and 26. Ueda said the findings will be publicized in an outlook report due out soon.

Ueda told The Asahi Shimbun in an interview earlier this month that the underlying inflation rate, excluding temporary factors such as the pass-through of import cost increases, had not reached 2 percent.

However, he indicated that an excessive depreciation of the Japanese currency that impacts the overall economy and consumer prices would likely lead to a decision to raise rates further.

Ueda told the news conference that the G-20 meeting provided him with an opportunity to explain the BOJ’s recent policy change as it was the first major international monetary conference since Japan lifted its negative interest rates in March.

“There was no major market disruption, and there was a sense of relief (from other countries),” he added.

Related News