Ueda Warns Energy Shocks Could Drive Persistent Inflation
Bank of Japan Governor Kazuo Ueda stated that temporary energy shocks can lead to persistent inflation if they influence wage growth and price-setting behavior. His remarks follow a rise in core inflation above the 2% target, fueling market expectations for a potential interest rate hike as soon as next month.
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Bank of Japan Governor Kazuo Ueda warned on Wednesday afternoon that energy shocks can trigger persistent inflation if they drive wage growth and price-setting behavior. Core inflation in Japan accelerated past 2% in April, increasing pressure for a June interest rate hike. Investors are monitoring these hawkish signals as the central bank shifts from decades of ultra-loose monetary policy.
