MNI POLICY: BOJ Kuroda: To Keep Easy Policy; Economy Expanding

--Kuroda Says BOJ Must Keep Close Eye On Protectionist Moves

     TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda reaffirmed Thursday

that the BOJ will patiently continue with its current easy policy so as to

maintain the mechanisms needed to fuel a rise in the inflation rate.

     In a speech at the annual meeting of the Japan Securities Dealers

Association, Kuroda also said the BOJ would maintain "its firm stance of

achieving the price stability target" of 2%.

     Other key points from Kuroda's speech:

     --The policy decisions taken at the July policy meeting are aimed at

achieving the 2% price target at the possible earliest time, while securing

stability in economic and financial conditions.

     --The BOJ will continue to conduct appropriate monetary policy, all the

while examining the associated risks considered most relevant.

     --Kuroda remained optimistic on Japan's economic outlook, saying, "Japan's

economy is expanding moderately, with a virtuous cycle from income to spending

being maintained in both the corporate and household sectors."

     --The economy is likely to continue its moderate expansion, although the

BOJ needs to pay attention to recent protectionist developments.

     --Kuroda also noted there were no observed signs of overheating in

financial conditions.

--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

[TOPICS: MAJDS$,MMJBJ$,M$A$$$,M$J$$$]