The recent slide in global oil prices is a benefit for the world economy and could lead to some upgrades of economic forecasts, Bank of Japan Governor Haruhiko Kuroda said on Monday.
“For the world economy, without a doubt, weaker oil prices are a plus,” Kuroda told reporters on the sidelines of the G20 meeting of finance ministers and central bankers in Istanbul.
The recent rout in oil prices, and its implication for the global economy, is a major theme at the G20 meeting, as lower fuel prices are seen pushing some economies dangerously close to deflation.
However, Kuroda said that the overall benefits of lower oil prices could potentially lead to increased expectations for economic growth.
“We could see some movement toward upgrades of economic forecasts,” he said.
He also said the recent weakness in the Japanese yen JPY= was not posing a problem for the world’s third-largest economy.