Kuroda said the BOJ was ready to relax if the rising yen hurt the trajectory of price targets

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Tuesday that the central bank was ready to implement stimulus measures if the rising yen hurt the economy and prevented investors from taking action. achieve its inflation target of 2%.

But he added that the BOJ would carefully consider the benefits and costs of any new easing policy, suggesting that the impediment to boosting stimulus would be high, given the damage done to financial institutions by interest rates close to zero.

"Currency movements could have an impact on the economy and prices, so it is essential to take these factors into account to guide monetary policy," Kuroda told the parliament.

"If (the movements of money) have an impact on the economy and prices, and if we deem it necessary to reach our price target, we will consider a policy of easing", a- he declared.

Kuroda made these remarks in response to a question from an opposition lawmaker about whether the BOJ had the tools needed to revive stimulus measures in order to counter the pressure of a crackdown. strong rise in the yen.

The dollar rose slightly against the yen after Kuroda's remarks. It hardly changed at 110.655 yen after plunging as low as 110.45 earlier in the day.

Kuroda reiterated that the BOJ could use monetary easing tools, including reducing interest rates in the short and long term, increasing badet purchases or l 39; acceleration of the rhythm of the monetary printing.

"Whatever we do, we must carefully balance the benefits and costs of the step such as the impact on financial intermediation and the functioning of the market."