2017.03.2403:48:00UTC+00Kuroda: BOJ Sees No Reason to Ditch Monetary Stimulus, Raise Bond Targets

BOJ Governor Haruhiko Kuroda stressed the Bank of Japan is not compelled to increase bond yield goals or abandon the huge monetary stimulus, as inflation is still far from its 2% target.

The BOJ head refuted Friday that financial market woes that Japan's monetary authority will ultimately lose its capacity to manage long-term interest rates using its current scheme. But he said policymakers may start to vote on changing its rate target should inflation rise sharply.

Kuroda said they must analyze the fundamental trend of inflation when deliberating on monetary policy.

He added threats to the view is still inclined to the downside although business conditions and prices are making progress as the wider economic activity is not yet formidable enough to beef up inflation.