MNI: BOJ Kuroda: Rate Hikes To Slow Timing Hitting 2% Target

     TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda Thursday ruled out any

imminent rate hikes, saying higher policy interest rate now would slow the

timing in achieving the 2% price target.

     "Premature discussion of exit strategy from the easy policy will confuse

financial markets," Kuroda told lawmakers. The BOJ board won't discuss exit

strategy until the 2% inflation target is hit or is in sight, and then they will

send the necessary information to markets.

     He also said that the momentum toward achieving the 2% price target has

been maintained, although it isn't yet sufficiently embedded.

     "We patiently maintain the easy policy in order to achieve the 2% price

target. I don't think there is a limit of (the BOJ's) easy policy," Kuroda said.

     Ongoing trade disputes remain the biggest risk facing Japan's economy and

the BOJ continues to monitor developments, keeping a close eye on any impact to

the overall Asian economy.

     Kuroda also said there will likely only be a small direct impact on private

spending after the consumption tax hike to 10% from 8%, planned for October

2019, although the BOJ is paying close attention to how the sales tax hike

affects consumer sentiment, with the central bank ready to take any appropriate

action.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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