BOJ's board member Asada: Rising oil prices are driving inflation while also hindering growth, leading to a potential stagflation

stagflation is expected everywhere so welcome on board

The yen held near 159.6 per dollar, supported by rising intervention expectations as Japanese officials signaled readiness to act against excessive currency weakness. Verbal warnings from authorities helped stabilize the currency after it briefly moved beyond the key 160 level.

However, underlying pressures remain. BOJ board member Asada warned that rising oil prices are fueling inflation while also weighing on growth, raising stagflation concerns. This dynamic continues to challenge the yen, as Japan’s import-heavy economy remains vulnerable to energy shocks.