Tokyo (Times Of Ocean)- The Bank of Japan (BOJ) decided to maintain its monetary easing policy on Friday in spite of inflation shock and the effect of the Russian-Ukrainian war on the global economy.
The BOJ maintains its policy rate at minus 0.1%, and will continue to purchase government bonds in an unlimited quantity.
The Bank of Japan did not change its monetary policy, keeping the policy rate unchanged at minus 0.1%, in contrast to other major central banks such as the US Fed and Bank of England, which tightened policy and hiked rates.
In addition, Japan’s central bank plans to continue purchasing Japanese government bonds and equities worth up to 12 trillion yen ($101 billion) a year.
“Japan’s economy has picked up as a trend, although some weakness has been seen in part, mainly due to the impact of COVID19,” the BOJ said in a statement.
The report also noted that the global financial and capital markets have been volatile following Russia’s invasion of Ukraine, and commodity prices, such as crude oil, have risen substantially as well, “and future developments merit attention.”
Wholesale inflation in Japan reached 9.3% in February, the highest level in 41 years. After April, consumer inflation is also expected to rise above 2%.
The bank aims to achieve its price stability target of 2%.