Global economic outlook weakens amid energy shock and rising inflationary pressures

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It is my great pleasure to have the opportunity to speak today at the Kisaragi-kai meeting. Since early spring this year, the environment surrounding economic activity and prices both in Japan and abroad has been significantly affected by increased tension over the situation in the Middle East. As the surge in crude oil prices draws global attention to heightened inflationary pressure, central banks around the world face challenges in navigating their particular context for economic activity and prices. The Bank of Japan is no exception. In conducting monetary policy appropriately, it has become more important to accurately gauge the current situation of economic activity and prices and envision future developments. Today, after discussing its view on economic activity and prices, I would like to t BoJ's Governor Ueda: Our basic stance is to continue raising policy rate in accordance with economic, price, financial developments. BOJ GOV UEDA: EVEN IF SITUATION REGARDING MIDDLE EAST REMAINS UNCLEAR, SHOULD IT BE JUDGED THAT UPSIDE RISKS TO PRICES OUTWEIGH DOWNSIDE RISKS TO ECONOMIC ACTIVITY, IT WILL BE NECESSARY TO THOROUGHLY DISCUSS PROS AND CONS OF RAISING POLICY RATE BoJ's Governor Ueda: Likely that a rise in crude oil prices will push up the prices not only of energy, but also prices in general, particularly of a wide range of goods. BOJ GOV UEDA: THE ENVIRONMENT IN JAPAN TODAY HAS CHANGED SIGNIFICANTLY, COMPARED TO 4 YEARS AGO, AS THE COUNTRY'S DEFLATIONARY MINDSET HAS BEEN DISPELLED AND THE WAGE- AND PRICE-SETTING BEHAVIOUR OF FIRMS HAS BECOME MORE ACTIVE

SNB's Schlegel: increased willingness to intervene in FX SNB's Schlegel: mid-term inflation pressure is basically unchanged