BOJ Kuroda, PM Abe Holding Regular Meeting on Economy, Markets

     TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda is holding a routine

lunch meeting with Prime Minister Shinzo Abe Tuesday to compare notes on

economic and financial conditions.

     The meeting comes at a time of generally firm stock markets, stable yen

exchange rates and continued modest economic recovery in Japan.

     At its next policy meeting on Dec. 20-21, the Bank of Japan board is

expected to maintain its current yield curve control targets.

     Kuroda told a financial forum Monday that the current nearly flat Japanese

government bond yield curve is appropriate for sustained growth and stable

prices without hurting the functioning of the banking system.

     But he also said the central bank would take action to prevent any

unfavorable factors from preventing the central bank from achieving its 2%

inflation target.

     Japan's annual inflation rate measured by core CPI (excluding fresh food)

is still below 1%.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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