**Translation Result:** Institution: BOJ's "Policy Reaction Function" Has Shifted; Yen Trend Becomes Key to Rate Hikes

Odaily Planet Daily News A significant weakening of the yen could prompt the Bank of Japan (BOJ) to take action, as the central bank stated in a report that it will continue to raise interest rates based on economic, price, and financial conditions. Naomi Rikugusha, a strategist at Mitsubishi UFJ Morgan Stanley Securities, stated that this marks a shift in the BOJ's "policy reaction function." In the report, the BOJ indicated that foreign exchange rates are increasingly likely to influence prices, and that such fluctuations could affect underlying inflation by changing inflation expectations. The BOJ does not directly target the yen, but if yen depreciation significantly accelerates price increases, the central bank may adjust its policy. (Jin Shi)