TOKYO—The Bank of Japan must maintain ultra-loose monetary policy as recent cost-push inflation could hurt the economy, Governor Haruhiko Kuroda said on Tuesday, highlighting a widening gap with the U.S. Federal Reserve’s aggressive tightening plan.
The central bank’s increasingly isolated dovish stance helped push the yen below 120 to the dollar on Tuesday for the first time since 2016, drawing a warning from the finance minister against rapid exchange-rate moves.
