KOENIGSWINTER, Germany: Having long trod a similar path to tackling low inflation, Japan and Europe seem 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.
Governor of the Bank of Japan, Haruhiko Kuroda, said on Friday that the recent cost-push inflation will be short-lived and won't warrant withdrawing the stimulus.
There is absolutely no change to our view it's appropriate to maintain our yield curve control policy, including negative interest rates, said Kuroda after attending the G 7 finance leaders' meeting.
Kuroda was a contrast to European officials who are increasingly concerned about inflation, enough to pre-commit to rate hikes.
After the G 7 meeting, European Central Bank policymaker Joachim Nagel said that negative interest rates are a thing of the past.
Inflation dynamics have changed dramatically in a relatively short period of time. In most of the G 7 countries monetary policy has changed.