Japan’s Katayama Warns of Risks over Oil Dependence on Middle East

Paris, May 19 (Jiji Press)–Japanese Finance Minister Satsuki Katayama on Tuesday warned of risks of Asian countries’ heavy reliance on the Middle East for oil and other products amid the war in Iran. The war’s “impact on Asia, which is dependent on the Middle East for oil and others, needs to be watched with particular attention,” Katayama said at a press conference after a meeting of the Group of Seven finance ministers and central bank governors in Paris. Bank of Japan Governor Kazuo Ueda said that the central bank will closely watch upside risks in inflation in the country. Japanese materials makers have been passing on costs to customers relatively quickly, he said. Global economic uncertainty has begun to impact the economy and prices in Japan, Ueda said. The Japanese government is considering assembling a supplementary budget to finance subsidy programs to curb prices of electricity, city gas and gasoline. Katayama said, “Efforts to alleviate a price shock have been made by major countries.” She said that there was no criticism of Japan’s fiscal policy at the G7 meeting. Ueda said that Japanese government bond yields have been “rising quickly recently” because of concerns about inflation amid the Iran war. “We will keep a close watch on the JGB market in close collaboration with the government.” END [Copyright The Jiji Press, Ltd.]