Bank of Japan Governor Kuroda, speaking at the Parliament in Tokyo on Friday, hinted at additional easing if needed, coupled with quantitative easing, to purposely act on the Central Bank’s target to achieve 2 pct inflation.

The Governor further said that there remain ample options available to expand policy stimulus until the policy effects on the economy are confirmed. He also mentioned that more time is needed to scrutinize the past effects of easing measure on the earthquake-hit economy.

"There is no doubt that the BOJ has ample space for additional easing, such as expanding asset purchases or pushing interest rates deeper into negative territory, "Kuroda said at an upper house financial committee meeting in Tokyo.

The BoJ’s move in January this year to adopt negative interest rates for its massive asset-buying program in an attempt to stimulate inflation surprised markets, but failed to check the rising pace of the yen and fall in the Japanese stock prices. This has added further to the pressure on the apex bank to adopt more stimuli to aid the drowning economy.

"Long-term inflation expectations have weakened recently, but appear to be rising on the whole from somewhat long-term perspective," Kuroda said in his statement.

Kuroda further said that uncertainty over the global economy, such as soft emerging market demand, was among the most important risks to Japan's economic outlook and could hurt business sentiment. He mentioned in his speech that inflation would rise naturally as inflation heads toward the 2 pct target. He defends that unconventional monetary policy is aimed at keeping current interest rates low, in anticipation of higher borrowing costs in the future.

"Won't hesitate to take additional easing steps if FX moves and overseas developments make it difficult for us to achieve our price target," the Central Bank Governor commented.