Japan Faces Unprecedented Risks Amid Rising Oil Prices, Nomura Economist Says

Nomura economists have highlighted Japan's exposure to unprecedented risks due to the continuous rise in oil prices and concerns over the supply of petroleum products. According to Jin10, the Bank of Japan is likely to delay interest rate hikes in response to these challenges. In a speech on Monday, Bank of Japan Governor Kazuo Ueda expressed increased concern over the potential economic downturn risks posed by Middle Eastern conflicts, compared to his remarks at the March press conference. Ueda noted that if the conflict persists, it could disrupt supply chains and adversely affect the operations of Japanese businesses.