cost-push inflation

However, the BOJ has brushed aside such speculation, saying that the current global cost-push inflation is not sustainable.

"It's true the recent cost-push inflation is lowering real income, hurting households and adding burdens to some smaller firms," Ueda said.

The BOJ has said such cost-push inflation will dissipate, and must be replaced by price rises driven more by robust domestic demand in order for it to consider ending ultra-low interest rates.

But the BOJ has said the recent cost-push inflation must be replaced by price rises driven more by robust domestic demand, and accompanied by wage growth, in order for it to consider ending ultra-low interest rates.

"As long as oil prices remain well behaved in the face of geopolitical tensions, that will mean that cost-push inflation may not re-accelerate and, by implication, the Fed could stick to its recent more-dovish rhetoric ruling out further rate hikes."