Ueda says duration of Saudi pipeline disruption still unclear
The Bank of Japan governor spoke a day after the central bank raised its overnight call rate to 1.25%
Published
Map: The Middle East, marking Abqaiq, Yanbu, Jeddah
Bank of Japan Governor Kazuo Ueda said it is still uncertain whether the disruption to Saudi Arabia's east-west pipeline will last longer, and said the situation needs to be watched closely. He said no policy options are off the table and that the central bank is considering different approaches.
The pipeline was hit last week when an attack struck three pump stations. Saudi Arabia has since restored about half of the line's capacity, with full restoration expected within six weeks. Sirens also sounded in Jeddah after a projectile was reportedly fired at the city, halting flights there.
Ueda's remarks came a day after the Bank of Japan raised its overnight call rate to 1.25%, its second increase this year following a hike in June.
By leaving the timing and shape of any response open, Ueda kept the central bank's options fully available, in keeping with its recent message that rate decisions rest on incoming data rather than external shocks. The comments are unlikely to shift market expectations for the bank's next move in December or beyond, but they signal that the Bank of Japan does not intend to let geopolitical events alone dictate its policy path.