URGENT: BOJ chief rejects rate hikes, sees rapid yen drop negative

Bank of Japan Governor Haruhiko Kuroda on Thursday rejected the notion of raising interest rates in the near future, as the country is only halfway through its economic recovery from the COVID-19 pandemic, despite accelerating inflation.

Speaking at a post-BOJ Policy Board meeting press conference, Kuroda said the yen's recent rapid depreciation raises uncertainty for Japanese companies and is negative for the Japanese economy, noting that one-sided, speculative moves have been observed in the currency market.

Kuroda acknowledged that the recent inflation in Japan is partly due to the weaker yen that increases import costs. The yen has been trading at levels not seen over the past 24 years against the U.S. dollar.

© Kyodo News