Bank of Japan Governor Haruhiko Kuroda said on Wednesday the central bank would maintain its expansionary monetary policy to keep inflation at its 2 percent target along with wage growth.

Kuroda’s comments at a New Year’s meeting of the Japanese bankers’ association counter lingering market speculation that the Bank of Japan could join the world’s major central banks in tightening the money supply to combat inflation, which is at a decade-high high.

The world’s third-largest economy will grow steadily and steadily this year, supported by conditions in favor of monetary easing, although uncertainties such as inflation and the COVID-19 pandemic remain, Kuroda said.

Adding to the uncertainty, the yen rebounded sharply on speculation that the Bank of Japan may start to move away from its ultra-loose monetary policy, after it last month extended the yield cap range on Japanese government bonds to 10 years.

The yen hit seven-month highs above 129 yen against the U.S. dollar on Tuesday on growing expectations that the Bank of Japan could move away from its policy in favor of monetary stimulus.

Media reported over the weekend that the Bank of Japan would raise its inflation forecasts in January to bring prices close to its 2% target in fiscal years 2023 and 2024.