[Former Bank of Japan Executive: Central Bank May Issue Warning on Severe Inflation Volatility Triggered by Iran War] March 27, Jin10 Data – Former Bank of Japan (BOJ) Executive Kazuo Momma stated on Friday that, given the unprecedented challenges posed by the Middle East conflict to interest rate policy, the BOJ is likely to warn in next month’s quarterly report that core inflation could experience severe volatility. Momma noted that prior to the U.S. and Israel launching an attack on Iran on February 28, the BOJ appeared ready to raise interest rates as early as March or April. However, the subsequent surge in oil prices and disruptions to shipping in the Strait of Hormuz have made this path increasingly uncertain. He stated that as hopes for a swift end to the war gradually fade, the BOJ now faces significant uncertainty regarding how this oil shock will impact global and domestic economic growth, inflation dynamics, and corporate wage-setting. These variables are likely to prompt the central bank to warn of two major risks in its upcoming quarterly report: the economic shock from demand contraction caused by the Middle East conflict and the inflationary pressures exacerbated by supply shocks.