Japan business lobby chiefs urge government to tackle weak yen, media reports

TOKYO, Jan 1 (Reuters) – Two major Japanese business lobby groups have called on the government to address the weak yen, which is “inflating import costs and weighing on households and businesses”, their leaders told domestic media in separate interviews.

Yoshinobu Tsutsui, head of Japan’s biggest business lobby Keidanren, said in a group interview with several domestic media outlets that yen weakness tends to be highlighted for its benefits, such as increased profits for exporters.

But from a national strength perspective, “it would be better, in the long term, to adjust to a stronger yen,” he said, according to media reports.

In a separate interview with domestic media, Ken Kobayashi, president of the Japan Chamber of Commerce and Industry, noted that the cost of sourcing raw materials for small and medium-sized businesses is increasing due to the weak yen.

As the weak yen has been a “major factor” in inflation, the government and the Bank of Japan “must eliminate the feeling of helplessness among small business owners who import materials from abroad”, he said.

(Reporting by Makiko Yamazaki: ‌Editing by Neil Fullick)