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TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said there was no talk at Friday's policy meeting that additional monetary easing was needed at this stage, following the central bank's massive monetary stimulus earlier in the month.
Kuroda also told a news conference that the board's Takahide Kiuchi and Takehiro Sato dissented from the BOJ's forecast that Japan will likely see 2 percent inflation in the latter half of the three years to March 2016.
Below are key quotes from Kuroda in his news conference:
"Board members Sato and Kiuchi dissented to the forecast that consumer inflation will approach 2 percent in the latter half of the report's projection period (to March 2016) ...
"It's true that the longer ahead the projection is for, there's more uncertainty over it as seen in the divergence (in each member's price forecasts)."
"There were no calls at today's meeting for further monetary easing at this stage ... There was agreement that it's appropriate to continue with the current policy."
"From a long-term perspective, it's natural for long-term interest rates to rise if prices do start to rise and inflation expectations heighten ... But I don't see the chance of nominal interest rates rising immediately.
"For the time being, the BOJ will be buying 50 trillion yen of government bonds annually to expand the monetary base by 60 trillion to 70 trillion yen each year. We'll be buying bonds in a balanced way across the yield curve. That should curb rises in nominal long-term interest rates to a large extent.
"As the economy recovers and prices start to rise, it's natural for long-term interest rates to rise. But Japan isn't near that stage yet."
"It's inappropriate for me to comment on specific currency levels or its direction. At the BOJ's branch managers' meeting, some managers said smaller companies were worried about a rise in costs (as a result of a weakening yen). On the other hand, exporters have seen profitability, earnings and business sentiment improve (from yen declines) ...
"The BOJ guides monetary policy to achieve its goal of price stability. Currencies are neither the purpose nor the target of our policy."
"Japan's net debt-to-GDP ratio is around 120 percent. There are industrialised nations whose net debt ratio is similar. That said, I am not saying such a debt ratio can be sustained.
"Japan needs to achieve a primary budget surplus as soon as possible and lower its debt-to-GDP ratio ... It needs to make efforts to restore fiscal health."
(Reporting by Leika Kihara and Stanley White; Editing by Sanjeev Miglani)