BOJ chief tells Abe ready to take steps if price goal in doubt

TOKYO, Sept 11 (Reuters): Bank of Japan Governor Haruhiko Kuroda told Prime Minister Shinzo Abe he is prepared to take whatever steps needed to achieve the central bank's 2.0 per cent inflation target if it comes under threat.
In a face-to-face meeting about the economy, however, Kuroda said he received no particular instructions from Abe. Kuroda said he discussed the economy after a sales tax increase in April and told Abe that Japan's economic momentum remains intact.
Kuroda's optimism about the economy suggests he sees no need for immediate action, but the meeting with Abe could fuel speculation the BOJ will ease policy again sometime in the future as another sales tax increase is scheduled for next year.
"I told the prime minister we will steadily continue with qualitative and quantitative easing launched in April last year to achieve our 2.0 per cent price goal," Kuroda told reporters after Wednesday's meeting with Abe.
"If that goal becomes difficult to achieve we will not hesitate to take whatever steps necessary, including additional monetary easing in adjusting policy. But at the moment, the positive cycle in the Japanese economy is continuing."
The first such meeting between the two since April comes ahead of Abe's crucial decision on whether to proceed with a second sales tax hike to 10 per cent planned for October next year.
The two, who meet one-on-one regularly about once every quarter, likely discussed a slew of recent soft economic data. Kuroda did not offer much details, except to say he told Abe that the global economy is on the recovery path.