---
title: "Japan's Central Bank Faces Challenges Amid Rising Energy Prices"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283079131.md"
description: "Japan's central bank governor, Kazuo Ueda, addressed rising energy prices' impact on inflation and economic risks during a media briefing in Washington. He noted the challenges in formulating policy responses ahead of the April 28 interest rate decision, which will also include updated economic forecasts. Ueda emphasized the importance of achieving a sustained 2% inflation target while acknowledging Japan's low real interest rates and accommodative financial environment. He refrained from signaling specific interest rate changes, highlighting the complexity of the current economic situation."
datetime: "2026-04-17T02:13:48.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283079131.md)
  - [en](https://longbridge.com/en/news/283079131.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283079131.md)
---

# Japan's Central Bank Faces Challenges Amid Rising Energy Prices

Japan's central bank governor, Kazuo Ueda, addressed the media in Washington on April 17 following the G20 finance ministers and central bank governors meeting. According to BlockBeats, Ueda highlighted the significant impact of rising energy prices, which pose both inflationary and economic downturn risks. Ueda emphasized the challenges policymakers face in addressing the inflationary pressures and economic risks stemming from Middle East conflicts. Ahead of the policy decision announcement later this month, he refrained from providing clear signals on interest rates. "This is why policy response is very difficult. It's not easy to give a general answer," Ueda stated, noting that this might be his last opportunity to signal to the market before the April 28 interest rate decision. The upcoming meeting will not only decide the benchmark interest rate but also release the latest economic forecasts, which are expected to raise inflation projections while potentially lowering growth forecasts. "Overall, considering the duration of the shock and other economic conditions, we will ultimately choose the most appropriate measures to achieve a sustained 2% inflation target," Ueda told reporters. "However, if I may add, even looking at the medium-term range, real interest rates in Japan remain very low," he added. "In this sense, the financial environment is highly accommodative. Keeping this in mind, we hope to continue making various decisions."

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