Bank of Japan Governor Haruhiko Kuroda said on Thursday that there is no need to cut rates deep into negative zone.
In a seminar, Kuroda said there is no change in the bank's stance of aiming 2 percent inflation target, although it is likely to take an extended period of time to achieve it. Due to the global spread of coronavirus, or Covid-19, inflation is expected to be weak on lower oil prices.
It is extremely important in the current phase to maintain accommodative financial conditions, he said.
Kuroda added that the top-priority is to protect employment, businesses and people's livelihoods until the spread of Covid-19 is contained.
The central bank is determined to do whatever it takes to ensure smooth financing and maintain stability in the financial markets, said Kuroda.