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Bank of Japan Governor Haruhiko Kuroda said on Wednesday that the BOJ will stabilize short- and long-term interest rates at low levels to expand the positive output gap and will not hesitate to take additional easing measures, if necessary.

Speaking to business leaders in Tokyo at an online event, Kuroda said the bank will further extend lending facilities, which are set to end Sep 30, while carefully monitoring the impact of the coronavirus on the economy and prices.

"Risks to economic activity are skewed to the downside for the time being, mainly due to the impact of Covid-19. Thus, it is necessary to closely monitor future developments," he said.