Bank of Japan’s Kazuyuki Masu says potential Iran war-driven energy crisis may hit Japan harder than the 1973 oil shock.
Bank of Japan policy board member Kazuyuki Masu stated that an Iran war-driven energy shock could have a more severe impact on Japan’s economy than the 1973 oil crisis. He highlighted the risk as requiring close attention amid rising inflation pressures.
Masu noted that Japan’s inflation is being driven by higher personnel expenses, distribution costs, and a weak yen. He also emphasized that food prices will be a key determinant of long-term inflation, signaling the end of Japan’s deflationary period.
The BoJ is monitoring prices, employment, and financial conditions as its policy rate nears the estimated neutral level. The USD/JPY pair showed minimal movement, trading down 0.02% at 157.85.