TOKYO (Reuters) – Bank of Japan Governor Kazuo Ueda said on Wednesday how the central bank should deal with cost-push inflation will depend on economic conditions at the time.
“In general, dealing with cost-push inflation is very difficult for central banks. On the one hand, you’d like to curb inflation. On the other hand, you don’t want to tighten monetary policy knowing that cost-push inflation will cool the economy,” Ueda told parliament.
“Striking the right balance is very difficult. It depends on economic developments at the time, including where inflation stood at the outset,” he said.
(Reporting by Leika Kihara; Editing by Shri Navaratnam)
