The Bank of Japan (BoJ) Governor Haruhiko Kuroda said in the conference held post monetary policy decision that the central bank's inflation target of 2 percent is likely to be reached around fiscal year 2018, while the country's economic growth continues to be on a moderate path.

He further added that the upward revision in growth forecast is reflective of a weaker yen amid hopes of outstanding global economic recovery. While board members Sato and Kiuchi contradicted the time frame for achieving 2 percent inflation goal, others foresee deeper downside risks to the economy.

Moreover, Kuroda said that maintaining negative interest rates is apt to meet the goal of 2 percent price inflation and that prevailing conditions seem perfect for increasing wages in the labour market. Although he believes that Trump's trade protectionism will not spread widely, he seems concerned that such policies would disturb global trade. Said that the BoJ as well as the Japanese government, share the common view that 3 consecutive policy meetings will help stabilize prices in the economy.

In addition, Governor said that the time is too early to discuss QQE exit strategy and that exit will depend on the economic situation prevailing at that time. He declined to express premature comments, so that it does not confuse markets; balance sheet and interest rates will remain key to planning an exit strategy. Said that the CB has reached only halfway in achieving the 2 percent inflation target.

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided to keep its short-term policy interest rate at minus 0.1 percent, while continue purchase Japanese government bonds (JGBs) so that 10-year JGB yields remain at around zero percent mark.

With regard to the amount of JGBs to be purchased, the Bank will conduct purchases at more or less the current pace -- an annual pace of increase in the amount outstanding of its JGB holdings of about 80 trillion yen -- aiming to achieve the target level of the long-term interest rate specified by the guideline.