REPEAT: MNI: BOJ Kuroda: Trade Impact Ltd; Must Eye Evolution

Repeats Story Initially Transmitted at 01:45 GMT Nov 5/20:45 EST Nov 4

     NAGOYA, Japan (MNI) - Japan's economy has seen limited impact from global

trade disputes, but the BOJ must monitor how investor sentiment and corporate

profits develop as uncertainty over the global economy increases, Bank of Japan

Governor Haruhiko Kuroda said Monday.

     Kuroda also noted that it is taking time to achieve the central bank's

inflation target and powerful monetary easing was still needed, although both

the upside and downside effects of policy needed monitoring.

     "It has been taking time to achieve the price stability target of 2%. In

such a situation where economic and price developments have been somewhat

varies, it has become necessary to persistently continue with powerful monetary

easing while considering both the positive effects and side effects of monetary

policy in a balanced manner," Kuroda told business leaders in Nagoya City,

central Japan. 

     Other key points from Kuroda's speech:

     --Looking forward, the BOJ will examine the risks considered most relevant

to the conduct of monetary policy and conduct its policy in an appropriate

manner, taking account of developments in economic activity and prices as well

as financial conditions.

     --If financial institutions become less risk adverse to secure profits amid

ongoing low interest rates and the competitive environment, the financial system

could destabilize should large negative shocks occur ahead.

     --It is necessary to pay close attention to future developments regarding

these risks and side effects from the viewpoint of conducting monetary policy.

     --Protectionist policies will not benefit any economy. The BOJ will

thoroughly examine the consequences of protectionist moves and their effects on

Japan's economy.

     --Japan's prices have been weak compared with the economic expansion and

the labor market tightening. Japan is still far from achieving the 2% stability

target but prices are unlikely to rise quickly, as structural issues putting

downward pressures on prices continue.

--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