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Kuroda says BOJ won't hesitate to ease further if needed

A general view of headquarters of the Bank of Japan in Tokyo, Japan.
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A general view of headquarters of the Bank of Japan in Tokyo, Japan.

Bank of Japan Governor Haruhiko Kuroda on Monday reiterated the central bank's readiness to expand monetary policy further if needed to achieve its 2 percent inflation target.

A positive "feedback loop", in which increases in jobs and wages lead to higher inflation, must strengthen further for Japan to see inflation hit 2 percent, Kuroda said.

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"If risks materialize and lead to changes in trend inflation, the BOJ won't hesitate to adjust policy as needed to achieve its price target at the earliest possible time," he said in a speech to business leaders in Osaka, western Japan.

The BOJ has kept monetary policy steady since expanding its massive monetary stimulus program in October last year to prevent slumping oil costs, and a subsequent slowdown in inflation, from delaying a sustained end to deflation.