TOKYO, April 10 (Reuters) – Bank of Japan Deputy Governor Ryozo Himino said on Friday the central bank will guide monetary policy with an eye on the scale and length of the economic shock caused by the Middle East war.
Speaking in parliament, Himino said he did not believe Japan was in a state of stagflation with inflation moving around its 2% target and the economy growing above its potential.
“But if the Middle East conflict persists and works to push down growth while accelerating inflation, it would pose a dilemma and difficult problem for us,” Himino said.
“We will take the most appropriate monetary policy decision from the standpoint of stably achieving our 2% inflation target with an eye on the scale and length of shock, as well as economic environment at the time,” he said.
(Reporting by Leika Kihara)
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