At the branch managers' meeting held on the 11th, the Bank of Japan's Governor Kuroda expressed the recognition that Russia's invasion of Ukraine is extremely uncertain about the impact on the domestic economy and prices through resource prices and other factors.
The Bank of Japan holds a branch managers' meeting once every three months, and this time it was held for the first time in about two years, with each branch manager gathering at the head office.
In this, Governor Kuroda reiterated the view that the current state of the economy is "although there are some weakening movements due to the effects of the new coronavirus, etc., but the trend is picking up."
On top of that, regarding the outlook for prices, "For the time being, energy prices are expected to rise sharply, and it is expected that the positive range will clearly expand as the price pass-through of rising raw material costs progresses. The underlying upward pressure on prices will increase." He stated that prices will continue to rise.
In addition to the trend of infection with the new coronavirus including mutant strains, the situation in Ukraine was cited as a risk factor. It has a high degree of certainty. "