Ueda Cites Two-Sided Risks as He Avoids Clear Hint on Rate Move

Bank of Japan Governor Kazuo Ueda stressed the challenges for policymakers as they cope with upside risks to prices and downside risks to the economy stemming from the Middle East conflict, avoiding a clear signal on rates ahead of the bank’s policy decision this month.

“The current situation involves a significant shock from rising energy prices. This creates both upside risks to prices and, at the same time, downside risks to the economy,” Ueda told reporters in Washington after he attended a meeting of Group of 20 finance chiefs and central bankers Thursday. “That is why policy responses are very difficult. It is not easy to give a general answer.”