TOKYO -Global central banks may already be facing a new economic environment where inflation will no longer revert to the low levels of the past, Bank of Japan Governor Kazuo Ueda said on Wednesday.
Ueda said there is a view among academics that the current ongoing global inflationary pressure will eventually subside and that a period of “low for long” will resume.
On the other hand, there is also a view that the current period of high inflation will change people’s views on prices, leading to a departure from “low for long,” he said.
“It may be difficult to deny the possibility that we are already in a new normal that is different from the period of ‘low for long’ (inflation),” Ueda said in opening remarks at an annual academic conference hosted by the BOJ.