By Leika Kihara
TOKYO (Reuters) -Global central banks may already be facing a new economic environment where inflation will no longer revert to the low levels of the past, Bank of Japan Governor Kazuo Ueda said on Wednesday.
Ueda said there is a view among academics that the current ongoing global inflationary pressure will eventually subside and that a period of “low for long” will resume.
On the other hand, there is also a view that the current period of high inflation will change people’s views on prices, leading to a departure from “low for long,” he said.
“It may be difficult to deny the possibility that we are already in a new normal that is different from the period of ‘low for long’ (inflation),” Ueda said in opening remarks at an annual academic conference hosted by the BOJ.
(Reporting by Leika KiharaEditing by Shri Navaratnam and Christian Schmollinger)
