Bank of Japan Gov. Haruhiko Kuroda said Group of 20 nations understand Japan’s stance to keep up its monetary easing to achieve stable, sustainable inflation while others seek to tackle sticky price gains.
Japan’s price growth, currently well above the BOJ’s 2% target, is mainly driven by imports and is expected to fall below the target in the fiscal year starting in April, which is why the central bank will need to maintain its monetary easing, Kuroda said on Saturday. He spoke from Bengaluru, India, following the conclusion of a G20 gathering of finance ministers and central bank governors.
Finance Minister Shunichi Suzuki said that G20 members applauded Kuroda’s long-term contribution as this meeting of the world’s top finance chiefs would be his last as the head of the BOJ. Kuroda’s tenure is set to end in April.
Suzuki said he was disappointed that the group didn’t issue a communique due to opposition from Russia and China. But by naming the two nations, the chair’s summary struck a stronger tone against Russia’s war, he said.
The G20 split was in contrast to the united front shown by Group of Seven nations earlier in the week. On Thursday, G7 host Japan held a meeting of the smaller group’s finance ministers, renewed condemnation of Russia and set aside more aid for Ukraine.
On Friday, which was the one-year mark of the war, Prime Minister Fumio Kishida hosted a G7 online summit, announcing Japan will impose additional sanctions on Russia, such as expanding an export ban to items like drones.