BOJ Policymaker Denies Stagflation Risk

Tokyo, March 24 (Jiji Press)--Bank of Japan policymaker Goshi Kataoka on Thursday denied the possibility of Japan falling into stagflation, or a recession accompanied by inflation.

A risk of stagflation is "not on my mind at the moment," Kataoka, a member of the central bank's Policy Board, said at a press conference.

Negative effects from the yen's recent sharp depreciation, such as price rises for imported goods, will likely be very limited, he said, adding that the weaker yen, which, for example, helps boost earnings at exporters, will be "a plus overall" for the Japanese economy.

Concerns over a downturn of the global economy are growing amid spikes in prices of resources such as crude oil and grains in the wake of Russia's military aggression in Ukraine. But Kataoka suggested that the impact on the Japanese economy will not be large.

While Western central banks, including the U.S. Federal Reserve, are starting to raise interest rates to control inflation, Kataoka hinted that the BOJ is highly likely to keep its current ultraeasy monetary policy intact for now. "There won't be at least a shift toward monetary tightening in our country," he said.

[Copyright The Jiji Press, Ltd.]