Bank of Japan to Calibrate Policy Based on Middle East War Impact: Deputy Governor Himino

Tokyo | April 10, 2026

Bank of Japan Deputy Governor Ryozo Himino on Friday said the central bank will carefully steer its monetary policy depending on the depth and duration of the economic shock triggered by the ongoing Middle East conflict.

Speaking amid growing global uncertainty, Himino emphasized that the central bank is closely monitoring how the war is affecting financial markets, energy prices, and overall economic stability. He noted that the scale and persistence of the disruption will be key factors in shaping future policy decisions

. “The impact of geopolitical tensions, particularly in the Middle East, could significantly influence Japan’s economic outlook,” Himino said, adding that the central bank remains prepared to respond flexibly if risks intensify.

The remarks come at a time when volatility in global oil markets and supply chain disruptions are raising concerns for import-dependent economies like Japan. A prolonged conflict could lead to higher inflationary pressures and slower growth, complicating the Bank of Japan’s policy path.

While the central bank has maintained an accommodative stance in recent years to support economic recovery, Himino signaled that policymakers are ready to adjust measures as needed to ensure financial stability.

Market analysts say the Bank of Japan’s cautious tone reflects broader concerns among global central banks as geopolitical risks continue to weigh on economic prospects.