tokyo july 15 reuters  the bank of japan boj is expected to reiterate its resolve next week to keep monetary policy ultraloose and remain a dovish outlier as many other central banks raise interest rates a commitment that could lead to further falls in the yen central bankers around the world are scrambling to cool stubbornly high inflation but stronger policy action could increase the risk of a global recession read more the boj however is in no rush to withdraw its massive stimulus with japans economy yet to recover to prepandemic levels and inflation  at slightly above its 2 target  well below that of other advanced nations if necessary well take additional monetary easing steps without hesitation with an eye on the impact of the pandemic boj governor haruhiko kuroda said on monday at its july 2021 meeting the boj is widely expected to maintain ultralow interest rates and a pledge to keep borrowing rates at current or lower levels the decision will come hours before that of the european central bank which looks set to raise rates for the first time since 2011 to combat inflation running at a record 86 the us federal reserve is also seen hiking rates again at its july 2627 meeting with investors pricing in the chance of at least a 75 basis point increase prospects of a widening usjapan interest rate gap pushed the dollar to a fresh 24year high above 139 yen on thursday the dollar stood at 13884 yen on friday when you look across the world the bojs dovish monetary policy stance is an easy target of overseas investors who may build up yenselling positions said mari iwashita chief market economist at daiwa securities once welcomed for the boost it gives to exports a weak yen is a now a source of concern for japanese policymakers as it inflates already rising cost of food and fuel imports in new quarterly forecasts due next week the boj is likely to revise up its inflation forecast for the year ending in march 2023 to above 2 and flag rising inflation expectations read more while the boj may also upgrade next years inflation forecast from the current 11 it will still project a slowdown from this year as the effect of soaring fuel costs dissipate say sources familiar with the banks thinking while sticking to its projection of a moderate recovery the boj will warn of risks such as slowing global growth and a renewed rise in domestic covid19 infections they said chinas economy contracted sharply in the second quarter data showed on friday and its recovery is expected to be slow and uneven further clouding the outlook for japans exports read more with infections on the rise the boj is leaning toward postponing a decision initially expected at the july meeting on whether to extend a september deadline for a pandemicrelief programme to support smaller firms funding the sources said