BoJ’s Ueda: Temporary oil shocks can become persistent

Bank of Japan (BoJ) Governor Kazuo Ueda said that identical oil price hike can produce varied impacts based on wages, expectations, demand, and currency rates, Reuters reported on Wednesday.

Key quotes

Supply disruptions are top of mind, not new but increasingly common. 

Central banks shouldn’t focus solely on oil prices. 

Identical oil price hike can produce varied impacts based on wages, expectations, demand, and currency rates. 

High inflation expectations and rising wages increase risk of second-round effects.