Mizuho Securities: O impacto do preço do petróleo coloca o Banco do Japão em uma encruzilhada de política

Goldman Sachs reports that on April 27th, Vishnu Varathan of Mizuho Securities stated that the oil price shock triggered by the Middle East war could, on one hand, damage demand, and on the other hand, further exacerbate existing inflation risks. The Bank of Japan expects to hold steady this week. The Bank of Japan is caught in a dilemma because it is unclear which risk will dominate and what countermeasures should be taken. Inflation already high before the outbreak of the Middle East crisis, along with intense depreciation pressure on the yen, limited the Bank of Japan’s ability to loosen policy in advance to hedge against potential growth shocks. Meanwhile, the Bank of Japan also cannot raise interest rates too quickly or too significantly, or it may undermine the prospects of achieving sustainable, healthy re-inflation. ( Kyodo News)