MNI BRIEF: BOJ Eyes Actual CPI, Not Outlook: Kuroda

Bank of Japan Governor Haruhiko Kuroda said on Tuesday that the BOJ will continue with monetary easing based on observed CPI inflation rather than its outlook, which is brightening, and made it clear the bank will prevent any big rise in rates through fixed-rate purchase operations for consecutive days.

"The BOJ can set, when necessary, an upper limit on interest rates more powerfully than before," Kuroda told business leaders in Tokyo following a speech . He added that the establishment of the Interest Scheme to Promote Lending enables the BOJ to cut short-and long-term interest rates nimbly while considering the impact on the functioning of financial intermediation.

Turning to the U.S., Kuroda said the risk of a surge in inflation there isn't high and reiterated that the BOJ would not hesitate to ease further, if necessary, based on covid and global developments.