This file photo shows the head office of the Bank of Japan in Tokyo. (Mainichi)

       TOKYO (Kyodo) -- The Bank of Japan is not headed toward policy normalization like the U.S. and European central banks as its 2 percent inflation target is still far off and aggressive monetary easing needs to be maintained, Governor Haruhiko Kuroda said Friday.

       Policy decisions by monetary authorities of other countries are based on their own economic conditions and will not immediately impact policies of the Japanese central bank, Kuroda said. Even if their rate hikes lead to a weaker yen, it will likely be "positive" for the Japanese economy under the current circumstances.

       "We've seen inflation accelerating to a great extent in the United States and Europe and moves toward policy normalization, while in Japan the rise (in the core consumer price index) is around zero percent...and we are too far from 2 percent," Kuroda told a press conference after a two-day policy meeting.

       "It's necessary to keep the current monetary easing steps strenuously," Kuroda said.

       The Japanese central bank is closely watching the impact of the Omicron variant of the coronavirus on economic activities and is ready to ease further if needed, Kuroda said.

       The remarks came after the U.S. Federal Reserve signaled three rate hikes in 2022 and decided to end bond-buying faster than previously planned. The Bank of England on Thursday became the first central bank in advanced economies to raise interest rates since the COVID-19 pandemic.

       Kuroda said the BOJ is aiming for 2 percent inflation but rising prices should come with wage growth.

       Prime Minister Fumio Kishida is calling for wage hikes to achieve his policy of wealth redistribution. The government plans to offer tax breaks to encourage companies to raise wages.

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