The Bank of Japan's Governor Kuroda said at a press conference about the outlook for prices: "From April, depending on the trends in crude oil prices and the government's response, there is a possibility that prices will rise by about 2%, mainly due to the rise in petroleum products." He acknowledged that the BOJ could reach its target inflation rate of 2%.
However, he said, "Most of the rise in prices is due to the rise in energy prices, and in the long run, negative corporate profits and an increase in the burden on households will lead to a rather recession in the economy."
On top of that, Governor Kuroda reiterated his policy of continuing the current large-scale monetary easing, saying, "Of course, monetary policy should not be tightened and it is not appropriate."
"The depreciation of the yen has the same positive effect"
In connection with the recent depreciation of the yen in the foreign exchange market, such as the yen's depreciation hitting the 119 yen level for the first time in about 6 years and 1 month, "The depreciation of the yen has both the economy and prices throughout. I believe that the basic structure of pushing up and having a positive effect on the Japanese economy will not change. "
He also said that rising energy prices such as crude oil would have a greater impact on the economy and prices than the depreciation of the yen, and he said he would carefully look at the future situation.
On the other hand, in response to the indication that central banks such as the United States have decided to raise interest rates one after another to curb inflation and the yen's depreciation will accelerate further due to the widening interest rate differential with Japan, "I do not think that will happen in the first place. There is not much correlation in the empirical research, and the widening interest rate differential will not immediately depreciate the yen. "