The Bank of Japan kept ultra-low interest rates on Thursday and vowed to hold them there to support economic growth as it swam against a global tide of monetary tightening by central banks fighting to rein in soaring inflation.

The decision came after the U.S. Federal Reserve delivered its third straight rate increase of 75 basis points on Wednesday and signalled more hikes, underscoring its resolve not to let up in its battle against inflation.

The policy divergence pushed the yen to a fresh 24-year low and past the closely watched 145 to the dollar level, highlighting the dilemma Tokyo faces in trying to support a fragile economy with ultra-low rates without accelerating an unwelcome yen decline that inflates the cost of imports.

Following are excerpts from BOJ Governor Haruhiko Kuroda’s comments at his post-meeting news conference, which was conducted in Japanese, as translated by Reuters:

Yen Weakness
“Various factors should be affecting currency moves but markets are focused single-mindedly on interest rate differentials.

This is a one-sided move driven in part by speculative moves. Recent rapid yen falls make it difficult for firms to set business plans and heighten uncertainty. As such, they are negative for Japan’s economy. We will coordinate closely with the government, and closely watch the impact market moves have on the economy and prices.”

Reuters