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BOJ maintains loose policy, calls further yen fall unlikely

Japan's central bank now an outlier among its global peers

Haruhiko Kuroda, governor of the Bank of Japan, gestures while speaking during a news conference at the central bank's headquarters in Tokyo on March 18. (Pool photo) 

TOKYO -- The Bank of Japan on Friday decided to stick with its huge stimulus in the face of economic headwinds such as commodity inflation and the Ukraine war, even as other major central banks shift to tighter policy.

BOJ Gov. Haruhiko Kuroda at a news conference acknowledged that higher commodity prices are adding to inflationary pressure in Japan but predicted rapid-paced price increases will be transitory, unless global commodity prices keep rising. "There is no need to tighten monetary policy in response to a transitory trend, as opposed to a sustained one," he said. "The economy actually needs a continued loose monetary policy to keep its recovery on track from the COVID pandemic."

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