MNI: BOJ Kuroda: Japan Economy Needs Continued Easing

--Kuroda: BOJ To Continue Buying ETFs To Help Achieve 2% Inflation 

     TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda said Tuesday that the

BOJ must maintain its large-scale monetary easing stance as it takes times to

guide low inflation to its stable 2% target.

     "We are still far from achieving the 2% price stability target, so

maintaining the powerful easing is necessary for Japan's economy," Kuroda told

the Lower House Budget Committee.

     In response to criticism that the BOJ's massive asset purchases are

distorting financial markets, he said the bank will continue buying ETFs

(exchange-traded funds) as part of the easing program aimed at achieving the 2%

inflation target.

     "I don't think the BOJ's purchase of ETFs have caused big problems in

financial markets. We will continue buying ETFs while keeping a close watch on

its effects on the soundness of the BOJ's financial conditions," Kuroda said.

     Prime Minister Shinzo Abe told the same committee that he had not decided

on whom the government should appoint as the next BOJ governor.

     But he said he hoped the BOJ would push ahead with its "bold" monetary

easing to achieve the 2% price target, a shift from a more cautious stance seen

before Kuroda took office nearly five years ago.

     Japanese newspapers reported during the weekend that Abe planned to

reappoint Kuroda to a second five-year term as BOJ governor, allowing him to

accomplish the thorny task of guiding low inflation to a stable 2% under the

aggressive easing program launched in April 2013.

     Abe has said he has confidence in Kuroda's leadership in reflating the

economy.

     The government is expected to nominate Kuroda as the BOJ chief later this

month so that both chambers of the Diet can approve the nomination before

Kuroda's term ends on April 8, the press reports said.

--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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