MNI 5 THINGS: BOJ Kuroda Keeps Optimistic Economic Outlook

     TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda Monday maintained his

optimistic growth and inflation outlook for Japan's economy while the bank's

survey last week showed that business sentiment was hit by rising costs and

uncertainty over the impact of U.S. trade disputes on global demand.

     Kuroda told a quarterly meeting of BOJ branch managers that the BOJ would

adjust monetary policy as appropriate to keep the momentum toward the 2%

inflation target.

     The key points of Kuroda's remarks:

     -- Japan's economy is expanding moderately, with a virtuous cycle from

income to spending operating. Japan's economy is likely to continue its

"moderate" expansion.

     -- The year-on-year rate of change in the CPI (all items less fresh food)

is likely to continue on an uptrend and increase toward 2%, due mainly to an

improvement in the output gap and a rise in medium-to-long term inflation

expectations.

     -- The governor didn't say when the BOJ is likely to anchor inflation

around 2%. The board has stopped publishing the estimated timing of achieving

the 2% price target.

     -- As for the conduct of monetary policy, Kuroda said the BOJ will maintain

its monetary easing under the yield curve control framework adopted in September

2016 for as long as it is necessary to lift inflation to 2% and anchor it around

that level.

     -- "The BOJ will continue expanding the monetary base until the

year-on-year rate of increase in the observed CPI (all items less fresh food)

exceeds 2% and stays above the target in a stable manner."

     -- The BOJ will make policy adjustments "as appropriate," taking account of

developments in economic activity and prices as well as financial conditions,

with a view to maintaining the momentum toward achieving the price stability

target. Kuroda didn't discuss how and when policy might be adjusted.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

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

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