MNI POLICY: BOJ Kuroda: Watches Econ, Markets, Act If Need

     TOKYO (MNI) - The Bank of Japan will take appropriate policy action in a

timely manner, continuing to watch developments across the economy and financial

markets, Governor Haruhiko Kuroda said Wednesday, without elaborating as to when

and how.

     Kuroda told lawmakers, "If the coronavirus is prolonged, it will

(negatively) affect production activity and sentiment," with a chance the impact

could get worse across the quarter.

     He added, "The impact of natural disasters (happened in the fourth quarter)

is expected to waken in the first quarter. But Japan's exports and foreign

tourist businesses are already affected (by the coronavirus)," Kuroda said.

     A BOJ statement released Monday said "Global financial and capital markets

have been unstable recently with growing uncertainties about the outlook for

economic activity due to the spread of the novel coronavirus."

     "The Bank of Japan will closely monitor future developments, and will

strive to provide ample liquidity and ensure stability in financial markets

through appropriate market operations and asset purchases," it added.

     The Federal Reserve on Tuesday made a surprise 50bps rate Tuesday, just

hours after an extraordinary G7 call ended without explicit coordinated 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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