Bank Of Japan Keeps Easy Policy Stance Amid Inflationary Shock

The Bank of Japan (BOJ) maintained its monetary easing policy on Friday amid inflation shock.

This is said to be part of the severe impact of the Russia-Ukraine war on the global economy.

Unlike other major central banks such as the United States Federal Reserve (Fed) and the Bank of England, which shifted to tighter policy and hiking interest rates, the BOJ did not change its monetary policy, keeping the policy rate unchanged at minus 0.1%.

The BOJ said in a statement that; "Japan's economy has picked up as a trend, although some weakness has been seen in part, mainly due to the impact of COVID-19."

The BOJ also acknowledged that amid Russia's invasion of Ukraine, global financial and capital markets have been volatile, prices of commodities such as crude oil have risen significantly.

According to Daily Sabah, Japan's wholesale inflation reached 9.3% in February, which is the highest in 41 years.

Consumer inflation is also projected to rise above 2% after April, as the bank aims to achieve the price stability target of 2%.