MNI BOJ Kuroda: Won't Hesitate to Act on Large Downside Risks

     TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda said on Thursday that

the central bank stands to act as downside risks to economic activities and

prices remain large.

     "While continuing to carefully examine various risks, the BOJ will not

hesitate to take additional easing measures if there is a greater possibility

that the momentum toward achieving the price stability target gets lost," Kuroda

said at Japan Business Federation (Keidanren).

     Kuroda largely repeated his remarks  recently stated on the outlook for

monetary policy and Japan's economy.

     Other key points from Kuroda's speech:

     - BOJ projects that growth rate of the global economy will rise moderately

through mid-2020, subject to considerable uncertainties.

     - Three major reasons behind BOJ projection: uncertainties over the global

economy eased somewhat due to developments in the U.S.-China trade negotiations;

the global cycle for IT-related goods has been picking up; effects of each

country's macroeconomic policy.

     - Domestic demand is likely to follow an uptrend with a virtuous cycle from

income to spending operating. Although its pace of increase is expected to

decelerate temporarily, a large decline will likely be avoided.

     - Economic measures that the government recently implemented can exert

significant effects in maintaining the expanding trend in the economy with BOJ's

pursuit of strong monetary easing.

     - Aiming at achieving the price stability target of 2% as in other advanced

economies will lead to stability in foreign exchange rates from a long-term

perspective. Stability in foreign exchange rates has contributed to corporate

management and the stability of the overall economy.

     - BOJ will continue to achieve price stability target so Japan's economy

may grow sustainably under the virtuous cycle of the economy.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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