AdvertisementAdvertisementBusinessThe Bank of Japan's (BOJ) new board member Toichiro Asada attends his inaugural press conference at BOJ headquarters in Tokyo, Japan, April 1, 2026. REUTERS/Issei Kato01 Apr 2026 05:06PM (Updated: 01 Apr 2026 05:13PM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInAdd CNA as a trusted source to help Google better understand and surface our content in search results.Read a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST TOKYO, April 1 : Japan may face stagflation risks from the Iran war that would be challenging to deal with using monetary policy, new Bank of Japan board member Toichiro Asada said on Wednesday.With Japan having emerged from deflation and now facing inflation, the BOJ can no longer focus solely on keeping monetary policy loose, said Asada, who is viewed as an advocate of expansionary monetary and fiscal policy.Surging crude oil prices due to the Middle East conflict are increasing inflationary pressures, though raising interest rates to deal with the problem could hurt factory output and jobs, he said."Japan could be in a stagflationary trend," Asada said at his inaugural news conference after joining the nine-member board on Wednesday. "It's hard to deal with such a situation with monetary policy."Source: ReutersNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST