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Financial news agency, May 30 (trainee editor Zhou Ziyi) Bank of Japan governor Haruhiko Kuroda said on Monday that he would continue to adhere to a strong monetary easing policy to help the economy recover from the downturn. He also said that he would ignore any suggestions about withdrawing from the stimulus policy.

Kuroda told Congress that the yen was returning to stability from its recent "unpopular" rapid weakness, adding that the current situation was improving and the dollar / yen (usd/jpy) had fallen back to about 127.

Earlier this month, the yen once fell to a 20-year low of 131.35 yen against the US dollar, making it the worst performing group of 10 (G10) currency in the past three months, with a cumulative decline of 14% since the beginning of the year. This has raised concerns about the rising cost of living.

Some critics blame this on the extremely loose monetary policy of the Bank of Japan, which is being tightened by the Federal Reserve during the same period, resulting in the relatively strong performance of the US dollar.

Abnormal commodity prices are the driving force

When an opposition member of Parliament in Japan asked Haruhiko Kuroda about the relationship between the loose monetary policy of the Bank of Japan and the depreciation of the yen, Haruhiko Kuroda explained, "I don't think the monetary policy of the Bank of Japan is the reason for the rapid weakening of the yen."

"The recent weakness of the yen may be due to the abnormal situation that the oil price in the international market has exceeded $130 a barrel."

As of April this year, Japan's core consumer price index (CPI) rose by 2.1% year-on-year, which is the consumption excluding fresh food but including petroleum products.

The index increased by more than 2% year-on-year for the first time since March 2015, the fastest increase in seven years.

Kuroda said that a quarter of the rise in the price index was driven by the weakness of the yen, and the rest was due to the rise in global commodity prices, which are denominated in dollars.