[Bank of Japan Governor Kazuo Ueda Warns Oil Price Shocks May Drive Persistent Inflation] Jin10 News, May 27 – Bank of Japan (BOJ) Governor Kazuo Ueda stated that attention must be paid to the impact of surging oil prices on underlying inflation trends, though he did not explicitly indicate how this factor might influence the outcome of next month's policy meeting. On Wednesday, Ueda remarked, "Japan's experience shows that an oil price shock is never just an oil price shock; it is, in fact, a test of the entire inflation mechanism." He reflected on the effects of past oil crises since the 1970s and noted, "We are essentially experiencing the fifth oil price shock." "If a temporary shock alters wages, inflation expectations, and corporate pricing behavior, it could evolve into persistent inflation," he added. While Ueda did not directly signal the future policy path, his comments reflecting concerns over the impact of high oil prices may further fuel market speculation about a potential rate hike at the BOJ's June meeting. Overnight swap market pricing indicates that traders currently estimate a roughly 75% probability of a 25-basis-point rate hike by the BOJ next month.