Japan PM vows to keep watching yen, inflation moves carefully

TOKYO, Oct 9 (Reuters) - ‌Japanese Prime ​Minister ​Sanae Takaichi said on Friday the government will continue to ‌scrutinise exchange-rate and price developments carefully, and ⁠respond appropriately.

• Takaichi made the remark in parliament ‌in response to ‌a question from an opposition lawmaker on Japan's economic policy and the potential ​fallout from a weak yen

• She also said the administration will guide fiscal ⁠policy looking at various factors that affect the economy, ​including interest rates and yen moves

• The remarks follow those by Takaichi ​in parliament on Thursday ‌that Japan's economy no longer needed reflationary policies because it was ⁠not experiencing deflation

• Takaichi also told parliament on Thursday the government is fully respecting ⁠the Bank of Japan's independence in setting monetary policy, ​suggesting it would not push back against further interest-rate hikes

• Once an advocate of loose fiscal ‌and monetary policy, Takaichi is under pressure from markets to ‌reverse course with investors' concern over Japan's ⁠worsening finances and ‌rising inflation pushing ​down the yen and bond prices

(Reporting by Leika KiharaEditing by Shri ‌Navaratnam)

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