-- Bank of Japan Governor Kazuo Ueda said the rising energy prices have created a significant shock, making policy responses very challenging, Bloomberg News reported on Friday.
Speaking to reporters in Washington after a G20 finance meeting, Ueda highlighted the difficulty of balancing upside risks to prices against downside risks to the economy from the Middle East conflict, the news wire said.
Unlike before the previous two rate hikes, when Ueda sent clear hints to prepare the market, he stopped short of giving a clear signal on interest rates ahead of the board's April 28 decision, the publication said.
The governor said the bank would ultimately choose the most appropriate response to achieve its 2% inflation target, depending on factors such as the shock's duration, the report said.
His carefully balanced remarks came just before the board releases updated forecasts expected to raise inflation projections while possibly lowering growth estimates, it added.
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