Economist Warns Rising Oil Prices Could Impact Japan's Economy

Economist Kenji Yamamoto from Daiwa Securities has expressed concerns that increasing oil prices might drive Japan's economy into a downward spiral. According to Jin10, Yamamoto highlighted that a worsening trade deficit could lead to a depreciation of the yen, which would subsequently raise import prices. This yen depreciation-induced inflation could accumulate over time, heightening upward price risks. In the long term, this scenario could intensify inflationary pressures. The Bank of Japan's potential interest rate hike in April is likely to be a pivotal moment in shaping market confidence in its commitment to a tightening policy.