Having long trod a similar path in tackling low inflation, Japan and Europe now appear to be taking contrasting approaches to monetary policy and the risks of rising prices, which drew warnings at this week's Group of Seven gathering in Germany.
Bank of Japan Gov. Haruhiko Kuroda repeated his dovish mantra on Friday, saying the recent cost-push inflation will be short-lived and will not warrant withdrawing stimulus.
"There's absolutely no change to our view it's appropriate to maintain our yield curve control policy, including negative interest rates," Kuroda said after attending the G7 finance leaders' meeting.