BoJ flags stagflation risk if Middle East shock deepens, but says Japan not there yet.

BoJ Deputy Governor Himino said Japan is not in stagflation but warned a prolonged Middle East conflict could push up inflation and slow growth, creating a policy dilemma. The BoJ will stay data-dependent and assess the shock’s scale and duration. Summary:BoJ’s Himino says Japan not currently in stagflation Warns prolonged Middle East conflict could create stagflation-like conditions Highlights… Summary: . BoJ’s Himino says Japan not currently in stagflation Warns prolonged Middle East conflict could create stagflation-like conditions Highlights policy dilemma: weaker growth vs rising infl... Summary: BoJ’s Himino says Japan not currently in stagflation Warns prolonged Middle East conflict could create stagflation-like conditions Highlights policy dilemma: weaker growth vs rising inflation BoJ to assess scale and duration of shock before adjusting policy Reaffirms data-dependent approach at each meeting Signals flexibility, but no shift away from inflation target Bank of Japan Deputy Governor Ryozo Himino signalled a cautious but flexible policy stance, warning that a prolonged… For traders, the practical value is less about the headline alone and more about how it changes context, sentiment and the quality of the next decision. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.