BOJ Keeps Monetary Policy Unchanged

Tokyo, March 18 (Jiji Press)--The Bank of Japan left its ultraloose monetary policy unchanged Friday, in stark contrast to moves for policy tightening by central banks elsewhere in the world in order to stem inflation.

Japanese price increases reflecting soaring materials prices "will not continue for a long time," BOJ Governor Haruhiko Kuroda told a news conference after a monetary policy meeting.

"There is no need to change the monetary policy," he said, denying the need for an interest rate hike at the moment. Japan may achieve the BOJ's 2 pct inflation target as early as next month.

At the two-day meeting from Thursday, the BOJ's Policy Board voted eight to one to keep the short-term policy interest rate at minus 0.1 pct and continue guiding 10-year Japanese government bond yields around zero pct.

In a statement on the decision, the BOJ voiced concern over the fallout from Russia's invasion of Ukraine, saying that global financial and capital markets "have been volatile" and that prices of commodities such as crude oil "have risen significantly." Future developments "warrant attention," it added.

[Copyright The Jiji Press, Ltd.]