BOJ's Newest Board Member Sees Japan Inflation Creeping Up

The video discusses the current inflation in Japan, primarily driven by rising fuel prices and a weaker yen, which affects import prices. These are not the desired types of inflation for the Bank of Japan (BOJ) to alter its economic stance. Nakagawa mentions these factors could impact the Japanese economy, but it's uncertain if they will change policy outlooks. The weak yen, while beneficial for exporters, could worsen high energy prices, making it a double-edged sword.

What uncertainties exist regarding the policy outlook in response to inflation?

What does the term 'double-edged sword' refer to in the context of the weaker yen?