(Reuters] – On Friday, the Bank of Japan reiterated its large stimulus and cautioned of the increased risks of a fragile recovery due to Ukraine’s crisis. These comments reinforced expectations that Japan will continue to be an outsider in global efforts towards tighter monetary policy.

This contrasts starkly with the tone of the BOJ which is dovish, and that of the U.S. Federal Reserve or the Bank of England. They raised interest rates this week in order to stop rising inflation.

The BOJ kept its short-term target rate at -0.1%, and the yield for 10-year bonds at around 0% as per the consensus of the public. This was at the end of the BOJ’s two-day policy meeting on Friday.

Here are some excerpts taken from Haruhiko Koroda (BoJ Governor)’s post-meeting news conference comments, translated by Reuters

UKRAINE CRISIS’ EFFECT

Rising raw material prices are the biggest threat to Japan’s economy due to the Ukraine crisis. For the moment, Japan’s inflation will likely accelerate. However, it can also impact the economy in the longer term by driving down household income and corporate profits.