Decarbonization Investment to Give Some Inflationary Pressure: BOJ Ueda

Tokyo, Nov. 10 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Saturday that government subsidies for decarbonization investment are likely to give some inflationary pressure in the short term.

The upward pressure on prices can be absorbed for a while if underlying inflation remains below 2 pct, he also said at a debate held in Basel, Switzerland, by organizations including the Bank for International Settlements.

Still, Ueda said that monetary tightening would become necessary if inflationary pressure exceeds a certain level.

Ueda and other participants, including European Central Bank President Christine Lagarde, discussed issues such as the impacts of challenges from climate change on real economic activities and monetary policy.

Japan's government has set a target of the nation's public and private sectors spending a total of over 150 trillion yen over 10 years for the promotion of decarbonization.

[Copyright The Jiji Press, Ltd.]