[Institution: The Bank of Japan's 'Policy Reaction Function' Has Changed, Yen Movement Becomes Key to Rate Hikes] Jin10 Data, April 28 – A sharp depreciation of the yen may prompt the Bank of Japan to take action, as the central bank stated in a report that it will continue raising interest rates based on economic, price, and financial conditions. Mitsubishi UFJ Morgan Stanley Securities strategist Naomi Rokusha noted that this signifies a change in the Bank of Japan's 'policy reaction function.' In the report, the Bank of Japan stated that foreign exchange rates are increasingly likely to impact prices, and such fluctuations may influence underlying inflation by altering inflation expectations. While the Bank of Japan does not directly target the yen, if a significant depreciation of the yen accelerates price increases, the central bank may adjust its policy.