Bank of Japan executive governor Haruhiko Kuroda today reiterated the stance of Japan to maintain its current slack monetary stance. He maintains that Japan plans to take a stand away from the general monetary tightening strategy used in many countries.
He cited financial stability as the reason most commonly used to influence the acceptance and longevity of a policy. He, however, stated that the Tokyo economy is stable enough, and the Bank of Japan can afford to adopt a more loose monetary strategy to reach its target. The aim is to achieve a 2% inflation level in the economy. Kuroda, therefore, believes that interest rates in the long and short term will remain the same or even drop lower.
Japan’s Economy Is Recovering From the Pandemic
Consumer inflation in Japan, which is currently around 0.5%, is predicted to reach the 2% target this April, but that is due to an increase in energy prices. This will likely continue as a trend as the economy is still making a resurgence, especially from the effects of the Corona Virus Pandemic. 
The impact of the Ukraine conflict on Japan’s economy and assets remains very uncertain, so there is more concentration on the effects of the pandemic. The Governor of the Bank of Japan promises to keep a close eye on the impact of COVID-19 on households, cooperative organizations, and the economy as a whole and take appropriate easing measures as needed.
USDJPY is set to keep rising as the Japanese Yen drops in value.
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