According to an important survey of companies conducted by the Bank of Japan, Japanese manufacturers would prefer to see the Bank of Japan make a stable money market a greater focus of monetary policy rather than pursue stable inflation and economic growth.

According to a survey released on Monday, about 64% of the 638 manufacturers hope that the Bank of Japan's policies will keep the money market stable. The survey is part of the Bank of Japan's assessment of monetary easing over the past 25 years. Among business priorities, economic and price stability ranked second, and 54% of respondents chose this.

This result shows that as the yen is not far from a 34-year low, these companies are becoming more cautious about the trend of the yen and its impact on profits.

Furthermore, it also highlights the challenges faced by Bank of Japan Governor Ueda Kazuo, after the yen had the highest decline among major currencies. A growing number of business executives are urging the Bank of Japan to act to “bottom up” the yen. The yen exchange rate has boosted the cost of imported raw materials. Many companies say they can't pass on higher costs through price increases.

On Monday, the dollar operated around 155.80 against the yen. The yield on Japan's benchmark 10-year treasury bond hit the highest level in 10 years, as the market is betting that Japan will raise interest rates as soon as possible to support the yen.

The non-manufacturer tells a different story. Although a weaker yen usually raises import costs and harms the interests of these companies, only 33% of the 1,618 respondents in the industry (about half of those surveyed in the manufacturing industry) chose a stable yen as their preferred policy priority. Their most preferred option was economic stability, accounting for 63%. The second is price stability.

In April of last year, after Kazuo Ueda took office, the Bank of Japan announced that it would conduct an extensive policy review of the easing policy of the past 25 years. The central bank is expected to announce the results at the end of this fall.

Market interest in this assessment waned after the Bank of Japan ended the negative interest rate and yield curve control (YCC) program in March. Some analysts have predicted that this review will trigger these changes.