Not following the US UK interest rate hike, the Bank of Japan maintained monetary easing

According to Reuters Tokyo on March 18, the Bank of Japan kept its large-scale stimulus measures unchanged on the 18th and warned that the Ukrainian crisis would bring risks to the fragile economic recovery, which makes people further expect that Japan will remain independent in the process of the global shift to tightening monetary policy.
Bank of Japan governor Haruhiko Kuroda said the bank did not need to withdraw its stimulus measures and believed that the rise in inflation was mainly due to soaring energy and raw material prices.
"Japan's inflation rate is likely to rise to about 2% from April," he said at a news conference. "But this is mainly due to rising commodity prices, so there is no reason to tighten monetary policy. It is inappropriate to do so."

The dovish tone of the Bank of Japan is in sharp contrast to that of the Federal Reserve and the Bank of England, which announced interest rate hikes this week to prevent rapidly rising inflation from becoming entrenched, the report said.

As the market generally expected, the Bank of Japan kept its short-term interest rate unchanged at minus 0.1% at the end of the two-day policy meeting on the 18th, and promised to guide the yield of 10-year Treasury bonds to remain around zero.
"The Japanese economy is picking up, which is a trend," the central bank said in a statement This view is less optimistic than at its last meeting in January, when it believed that the economy was showing "clearer signs of recovery".
The central bank also warned that the crisis in Ukraine had brought new risks, saying that the crisis was undermining the stability of financial markets and significantly pushing up the cost of plateau materials.
"The progress of the situation in Ukraine may have an impact on the Japanese economy and prices through the market, raw material prices and overseas economy, and there is great uncertainty about its impact," the statement said
The Bank of Japan said that the rebound in consumption had been "suspended" due to the surge in domestic cases of Omicron infection.
The report said that Japan's economy may stagnate this quarter because supply disruptions and anti epidemic restrictions have curbed production and consumption.
Data released on the 18th showed that Japan's core consumer price index rose 0.6% in February compared with the same period last year, the fastest rise in two years, indicating increasing inflationary pressure caused by rising energy and food costs.
However, this is still far lower than 5.9% in the euro zone and 7.9% in the United States. Due to the acceleration of wage growth, high inflation in Europe and the United States has become deeply rooted.
However, this is not the case in Japan. The rise in inflation is mainly driven by supply side factors, such as the rise in the cost of raw materials.
Some analysts doubt whether Japanese households can withstand further price increases if wages do not rise sharply.
The report said that the rise in fuel costs has brought pain to families. In February, energy and electricity costs increased by about 20% year-on-year, the largest increase since 1981.
"With inflation and wage growth lagging behind other countries, the Bank of Japan has no choice but to patiently maintain stimulus measures, at least until the end of Kuroda's term in April 2023," said a senior analyst at Paris securities services